CMWF-Risk Adjustment Under the Affordable Care Act: A Guide for Federal and State Regulators

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This brief explores the challenges regulators will face, considers the consequences of the health reform law’s risk adjustment provisions, and analyzes the merits of different risk adjustment strategies. The brief suggests that regulators use diagnostic rather than only demographic risk measures that they allow states some but limited flexibility to tailor risk adjustment methods to local circumstances, and that they phase in the use of risk transfer payments to give insurers more time to predict and understand the full effects of risk adjustment.

Resource Details

Date: May 2011
Author: Mark Hall