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Financial Analysis of ACA Health Plan Issuers
Milliman Link to more items from this source
Feb. 23, 2016

"The [ACA] includes risk mitigation programs, also known as the 3 Rs, for individual and small group health insurance markets. The 3 Rs include a permanent risk adjustment program, a transitional reinsurance program for the individual market, and a temporary risk corridor program.... While half of the ACA health plan issuers included in our study accrued a $0 net risk adjustment transfer amount, no ACA health plan issuer realized a $0 net transfer amount.... Proration of the risk corridor program caused $2.5 billion in financial losses to ACA health plan issuers in 2014 relative to the actual results with no proration, based on payments made to date.... While the focus of this paper is on industry aggregate results, issuer-specific results vary widely from the industry averages."

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