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Risk Corridors and Reinsurance in Health Insurance Marketplaces: Insurance for Insurers
National Bureau of Economic Research [NBER] 
Sept. 22, 2014
"[The authors] compare reinsurance and risk corridors in terms of insurer risk reduction and incentives for cost containment, finding that one-sided risk corridors achieve more risk reduction for a given level of cost containment incentives than both reinsurance and two-sided risk corridors. [They] find that the ACA policies being implemented in the Marketplaces (a mix of reinsurance and two-sided risk corridor policies) substantially limit insurer risk but that they are outperformed by a simpler one-sided risk corridor policy according to our measures of insurer risk and incentives."
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