A risk corridor is a provision in US healthcare legislation that aims to stabilize health insurance premiums by limiting the financial risks borne by insurance providers.[1] Risk corridors are found in Medicare Part D and the Affordable Care Act (ACA).[2] In the Medicare Part D prescription drug program, risk corridors were established to protect participating insurers from bearing an excessive amount of risk due to fluctuations in drug pricing. These risk corridors were intended to ensure that the program was financially viable for insurers, while also helping to keep premiums affordable for consumers.
Under the Medicare Part D risk corridor program, insurers were guaranteed that their costs would be offset if they incurred large losses due to higher-than-expected drug costs. If insurers' drug costs were lower than expected, however, they were required to pay a portion of the savings to the government. This system was designed to encourage insurers to participate in the program and to minimize the risk of high premiums or financial losses due to drug price volatility.
Risk corridors have been controversial. The ACA established risk corridors for the health insurance marketplaces, but the program faced significant funding shortfalls and was criticized, as a "bailout" for insurers.[3] In 2014, Congress passed legislation that limited the federal government's ability to fund risk corridors.
Referencesedit
^Layton, Timothy J.; McGuire, Thomas G.; Sinaiko, Anna D. (February 2016). "Risk Corridors and Reinsurance in Health Insurance Marketplaces: Insurance for Insurers". American Journal of Health Economics. 2 (1): 66–95. doi:10.1162/AJHE_a_00034. ISSN 2332-3493. PMC4785828. PMID 26973861.
^Keith, Katie (April 28, 2020). "Supreme Court Rules That Insurers Are Entitled To Risk Corridors Payments: What The Court Said And What Happens Next". doi:10.1377/forefront.20200427.34146. {{cite journal}}: Cite journal requires |journal= (help)
^"Don't Force Taxpayers to Bail out Health Insurance Companies | Mercatus Center". www.mercatus.org. Retrieved 2023-02-23.
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risk, corridor, risk, corridor, provision, healthcare, legislation, that, aims, stabilize, health, insurance, premiums, limiting, financial, risks, borne, insurance, providers, found, medicare, part, affordable, care, medicare, part, prescription, drug, progra. A risk corridor is a provision in US healthcare legislation that aims to stabilize health insurance premiums by limiting the financial risks borne by insurance providers 1 Risk corridors are found in Medicare Part D and the Affordable Care Act ACA 2 In the Medicare Part D prescription drug program risk corridors were established to protect participating insurers from bearing an excessive amount of risk due to fluctuations in drug pricing These risk corridors were intended to ensure that the program was financially viable for insurers while also helping to keep premiums affordable for consumers Under the Medicare Part D risk corridor program insurers were guaranteed that their costs would be offset if they incurred large losses due to higher than expected drug costs If insurers drug costs were lower than expected however they were required to pay a portion of the savings to the government This system was designed to encourage insurers to participate in the program and to minimize the risk of high premiums or financial losses due to drug price volatility Risk corridors have been controversial The ACA established risk corridors for the health insurance marketplaces but the program faced significant funding shortfalls and was criticized as a bailout for insurers 3 In 2014 Congress passed legislation that limited the federal government s ability to fund risk corridors References edit Layton Timothy J McGuire Thomas G Sinaiko Anna D February 2016 Risk Corridors and Reinsurance in Health Insurance Marketplaces Insurance for Insurers American Journal of Health Economics 2 1 66 95 doi 10 1162 AJHE a 00034 ISSN 2332 3493 PMC 4785828 PMID 26973861 Keith Katie April 28 2020 Supreme Court Rules That Insurers Are Entitled To Risk Corridors Payments What The Court Said And What Happens Next doi 10 1377 forefront 20200427 34146 a href Template Cite journal html title Template Cite journal cite journal a Cite journal requires journal help Don t Force Taxpayers to Bail out Health Insurance Companies Mercatus Center www mercatus org Retrieved 2023 02 23 nbsp This economic policy related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Risk corridor amp oldid 1215999163, wikipedia, wiki, book, books, library,
