MPC Member Publications

This database contains a listing of population studies publications written by MPC Members. Anyone can add a publication by an MPC student, faculty, or staff member to this database; new citations will be reviewed and approved by MPC administrators.

Full Citation

Title: Estimated Costs of a Reinsurance Program to Stabilize the Individual Health Insurance Market: National-and State-Level Estimates

Citation Type: Journal Article

Publication Year:

DOI: 10.1177/0046958019836060

Abstract: Reinsurance, an insurance product designed to protect health insurers against the financial risk of covering high-cost enrollees, has attracted bipartisan policy interest as a mechanism to stabilize individual health insurance markets. Three states-Alaska, Minnesota, and Oregon-have implemented state-based reinsurance programs under the Affordable Care Act's 1332 State Innovation Waivers, and reinsurance waivers have been approved though not yet enacted in Maine, Maryland, New Jersey, and Wisconsin. In this article, we estimate the costs of implementing national and state-based reinsurance programs using health spending data from the 2007-2016 Medical Expenditure Panel Survey and state demographic and health insurance coverage data from the 2015-2017 Current Population Survey Annual Social and Economic Supplement. We project that a reinsurance program with an 80% payment rate for expenditures between $40,000 and $250,000 would cost $30.1 billion from 2020-2022. We observed considerable variation in reinsurance programs and estimated costs between the 4 states we examined: California, Florida, Illinois, and Texas. Our projections provide updated estimates of the costs of implementing federal reinsurance programs for the individual health insurance market. What do we already know about this topic? Reinsurance is being considered by state and national policy makers as a strategy to stabilize the individual health insurance market. How does your research contribute to the field? Our research leverages national data resources to estimate the size and spending in the individual market across 4 large states and estimates the costs of a fully funded national reinsurance program. What are your research's implications toward theory, practice, or policy? Our estimates are in line with estimates developed by Congressional Budget Office based on proposed legislation, and contribute to evidence that can be used for ongoing policy discussions on ways to stabilize the individual health insurance market.

Url: https://doi.org/10.1177/0046958019836060

User Submitted?: No

Authors: Drake, Coleman; Fried, Brett; Blewett, Lynn A

Periodical (Full): INQUIRY: The Journal of Health Care Organization, Provision, and Financing

Issue:

Volume: 56

Pages: 1-9

Countries:

IPUMS NHGIS NAPP IHIS ATUS Terrapop