ArticleAmerican journal of health economics2016
RISK CORRIDORS AND REINSURANCE IN HEALTH INSURANCE MARKETPLACES: Insurance for Insurers.
Article in American journal of health economics, 2016. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 8 papers.
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Who cites it
8 citing papers in PubMed.
- Better Fit, Same Game? Risk Adjustment, Coding Incentives, and the Limits of Prediction.Health services research · 2026Article
- Examining selection in Affordable Care Act (ACA) Marketplaces: special enrollment periods.Health affairs scholar · 2025Article
- Heteroscedasticity of residual spending after risk equalization: a potential source of selection incentives in health insurance markets with premium regulation.The European journal of health economics : HEPAC : health economics in prevention and care · 2024Article
- Assessment of the design and implementation challenges of the National Health Insurance Scheme in Nigeria: a qualitative study among sub-national level actors, healthcare and insurance providers.BMC public health · 2021Article
- Improving the Performance of Risk Adjustment Systems: Constrained Regressions, Reinsurance, and Variable Selection.American journal of health economics · 2021Article
- Measuring efficiency of health plan payment systems in managed competition health insurance markets.Journal of health economics · 2017Article
- Does Awareness of the Affordable Care Act Reduce Adverse Selection? A Study of the Long-term Uninsured in South Carolina.Inquiry : a journal of medical care organization, provision and financing · 2017Article
- Achieving Mental Health Care Parity Might Require Changes In Payments And Competition.Health affairs (Project Hope) · 2016Article
Corrections and comments
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Authors and funding
3 authors.
Funding
Abstract
Health Insurance Marketplaces established by the Affordable Care Act implement reinsurance and risk corridors. Reinsurance limits insurer costs associated with specific individuals, while risk corridors protect against aggregate losses. Both tighten the insurer's distribution of expected costs. This paper compares the economic costs and consequences of reinsurance and risk corridors. We simulate the insurer's cost distribution under reinsurance and risk corridors using data for a group of individuals likely to enroll in Marketplace plans from the Medical Expenditure Panel Survey. We compare reinsurance and risk corridors in terms of risk reduction and incentives for cost containment. We find that reinsurance and one-sided risk corridors achieve comparable levels of risk reduction for a given level of incentives. We also find that the policies being implemented in the Marketplaces (a mix of reinsurance and two-sided risk corridor policies) substantially limit insurer risk but perform similarly to a simpler stand-alone reinsurance policy.
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Registered trials
Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.