The Affordable Care Act (ACA) creates three interconnected risk management programs intended to protect consumers by stabilizing premiums during the initial years of the law’s implementation. Two of these programs (Reinsurance and Risk Corridors) are temporary and will provide much needed premium stability for consumers in the first three years of the reformed markets. The third program (Risk Adjustment) was designed to protect against adverse selection in the reformed marketplace. Together, these three programs—commonly known as the “3Rs”—help to create a stable and predictable environment for consumers seeking health insurance coverage in 2014.
Check out AHIP’s new Issue Brief, “Affordable Care Act Premium Stabilization Programs: How Reinsurance, Risk Corridors, and Risk Adjustment Protect Consumers,” to learn more about how these programs work and why they are important to protect consumers as the new reforms are implemented.