The Patient Protection and Affordable Care Act has set up a complicated, three-part program that could change how small-group carriers look at risk.
Jason Siegel, an actuary in the Brookfield, Wis., office of Milliman, has tried to analyze the effects of the Three Rs – a temporary reinsurance program, a temporary risk corridor program, and a permanent risk adjustment program – in a paper published by the Society of Actuaries.
The program "will likely have a material impact on the financial results of many insurance companies," Siegel said. "It exposes carriers to new types of risks, and, in some cases, can turn business strategies that were once viable upside down."
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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.
