Health Journalism Glossary

Reinsurance

  • Insurance

During the first three years under the Affordable Care Act (2014 through 2016), the law called for a temporary reinsurance program for those health insurers that enrolled higher-cost individuals (meaning those who had pre-existing conditions or poor health status). Designed to stabilize premiums, the reinsurance program transferred funds to individual insurance plans that had higher-cost enrollees.

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