Risk pooling in health care

Akinci, F. Noncompliant plans would likely be structured to be attractive to low-cost enrollees, through fewer required benefits, higher cost- sharing, and premiums that vary by health status. The three critical points to risk pooling are: Centralized inventory saves safety stock and average inventory in the system.

Therefore, in a market with separate risk pools for compliant and noncompliant coverage, costs would no longer be spread over the broad enrollee population. In a separate reportAAA noted that programs like reinsurance can help address the high cost of chronic conditions.

In other words, Intergovernmental Risk Pools are a cooperative group of governmental entities joining together through written agreement to finance an exposure, liability or risk. Health Economics Review, 2, Prior to the Affordable Care Actpeople who bought their own health insurance didn't get the same guaranteed-issue provisions enjoyed by people who obtained their coverage from an employer or a government-run program.

explain how a risk pool helps to lower the costs of health care for an insured employee
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How to Create Balanced Risk Pools that Lower Premiums