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Risk Adjustment in Health Insurance
Health Affairs Link to more items from this source
Aug. 31, 2012

"Insurance market reforms under the Affordable Care Act are designed to increase the number of Americans with insurance -- and to shed the current system in which health plans have an incentive to enroll healthier people while avoiding the sick. One of the arrangements that will make the new system workable is risk adjustment -- a process by which health insurance plans will be compensated based on the underlying health status of the people they enroll, and therefore protected against losing money by covering people with high-cost conditions."

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