Rules for the Patient Protection and Affordable Care Act could lead to severe adverse selection problems at the new public exchanges, three economists warn in new research.
Benjamin Handel, a researcher at the University of California at Berkeley, and two colleagues, concluded in a new working paper that efforts to keep insurers from using health status information in coverage pricing could lead to all consumers ending up in the skimpiest plans available.
The economists came up with those results after developing statistical models based on the assumptions that all people will have to buy coverage but insurers can come and go as they wish.
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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.
