MCMURRAY, Pa.--(BUSINESS WIRE)--Mark Farrah Associates (MFA), www.markfarrah.com, released an analysis brief assessing results from the last three years of the Affordable Care Act’s (ACA) Reinsurance and Risk Adjustment programs. The ACA established state-based Reinsurance and risk-adjustment programs to reduce the financial risk for participating health insurance companies selling coverage on the public exchanges in January of 2014. Reinsurance and Risk Adjustment were designed to provide stability in the early years of health care reform, with Risk Adjustment continuing over the long-term.
Focusing on the individual market, MFA summarized some key findings found within Department of Health and Human Services' (HHS) report from June 30th, 2017, “Summary Report on Transitional Reinsurance Payments and Permanent Risk Adjustment Transfers for the 2016 Benefit Year,” as well as presented a high-level look at performance of the plans most impacted by these programs. MFA analysts aggregated plan data by parent organization and summarized the findings over the three years of the programs. Subscribers to Mark Farrah Associates’ Health Coverage Portal™ may access key data found in this report with the benefit of NAIC company codes mapped to HIOS codes used for government reporting by health plans.
The HHS data aggregated by group showed that HCSC (Health Care Service Corporation) led the country in Reinsurance receipts from HHS, receiving nearly $2.3 billion over the three years of the program. Anthem, Humana, Aetna, and Blue Shield of California rounded out the top five Reinsurance recipients. GuideWell Mutual (doing business as Blue Cross Blue Shield of Florida) led the industry in Risk Adjustment receipts of $1.2 billion. Blue Shield of California, UnitedHealth, Assurant and Cigna rounded out the top 5 Risk Adjustment recipients over the three-year period. Finally, MFA found that Aetna led all health insurers in paying $1 billion into the Risk Adjustment program over the three-year period. Also included in the top 5 Risk Adjustment payers were Molina, Centene, Kaiser, and the New York State Catholic Health Plan.
To read the full text of "A Brief Analysis of the 2014 - 2016 ACA Reinsurance and Risk Adjustment Results,” visit the Analysis Briefs library on the Mark Farrah Associates website www.markfarrah.com.
About Mark Farrah Associates (MFA)
MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include Medicare Business Online™, Medicare Benefits Analyzer™, Health Coverage Portal™, County Health Coverage™, and Health Plans USA™.
