Actuary Jac Joubert, along with a pair of Oliver Wyman analysts, say a big new federal risk-management program could pay carriers too much for covering consumers with health problems and too little for covering low-risk people.
The analysts look at how one of the Patient Protection and Affordable Care Act risk management programs might work in a new commentary.
Many carriers are familiar with the "hierarchical condition category" risk-adjustment system that the Centers for Medicare & Medicaid Services already uses to adjust for Medicare Advantage plan enrollee risk, the analysts write.
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Allison Bell
Allison Bell, a senior reporter at ThinkAdvisor and BenefitsPRO, previously was an associate editor at National Underwriter Life & Health. She has a bachelor's degree in economics from Washington University in St. Louis and a master's degree in journalism from the Medill School of Journalism at Northwestern University. She can be reached through X at @Think_Allison.
