Tag: Risk

Obamacare’s Risk Corridor “Bailout” Just Got Bigger – Much Bigger »

Last Friday, the Obama administration quietly released 280 pages of rules that, among other things, increases Obamacare’s risk corridors (a.k.a. insurers’ bailout): We propose to implement an adjustment to the risk corridors formula..... Such an adjustment could increase a QHP issuer’s risk corridors ratio if administrative expenses are unexpectedly high or claims costs are...
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FDA Continues to Impede Medical Device Innovation »

In the Wall Street Journal this week, Dr. Scott Gottlieb discussed (gated, by subscription only) a worrying trend in the Food and Drug Administration’s regulation of medical devices. Increasingly, the FDA is demanding that device makers conduct trials of new devices by randomly assigning patients to the new device . . . or to...
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FDA Regulations Kill »

Paul Howard and Yevgeniy Feyman in Health Affairs: Meningitis is a terrible disease that can kill its victims in a single day. About 4,100 new cases are diagnosed annually in the U.S., with a mortality rate of more than 10 percent. Even with treatment, survivors are often left with serious side effects that can...
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What Republicans and Democrats Don’t Understand About the Insurance Company “Bailout” »

Last week I testified before the House Oversight committee on the “risk corridors” in the (ObamaCare) exchanges. Republicans claim that this is a device to bail out the insurance companies. Democrats, in the unusual position of defending the insurance companies, actually claimed that the government was going to make a “profit” because of it....
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Will the Federal Government Turn a Profit on Risk Corridors? That Can Be Stopped. »

I have written twice about the “risk corridors” in Obamacare’s health-insurance exchanges. The first post described how risk corridors will work in the exchanges. Risk corridors exist for three years and are designed to partially immunize insurers from losing money in the exchanges. Recently, the risk corridors have been described as a “bailout,” especially...
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Is There an Argument—Any Argument—for Community Rating? »

I’ve never seen an intelligible argument for community rating. I think I know why. I’m afraid there isn’t any. Don’t believe me? I’ll tell you what I’ll do. I let you pick any recognized ethical system in the entire history of Western philosophy. (Only Western? Yeah, we’re not cultural relativists here.) Altruism, Egoism, Nietzschean...
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Will Republicans Repeal Obamacare’s Risk Corridors? »

This blog’s readers are better informed than most about the (somewhat complicated) question of how health insurers will be compensated for bearing risk in Obamacare’s health insurance exchanges. A previous entry explained the basics of two of the three programs that protect health insurers from losing too much money on Obamacare’s exchanges. These are...
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Obamacare Risk Adjustment: Moving the Goalposts »

As noted in a previous blog entry, the Obama administration has ways to partially immunize health insurers from losing money in Obamacare’s exchanges. A later entry proposed that early results of open enrollment for Obamacare, which began on October 1, suggest that health insurers will require a bigger bailout than originally anticipated, and the...
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The Median Voter, the Marginal Consumer, and Obamacare: Why No Politician Competes for the Votes of Patients with Bladder Cancer »

On October 30, President Obama gave a now infamous speech celebrating the going out of business of so-called “bad apple” insurers. According to the President, “before the Affordable Care Act, these bad apple insurers had free rein every single year to limit the care that you received or used minor pre-existing conditions to jack...
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A Woman May Die Because of Obamacare »

For the past 20 years I have been trying to convince my colleagues in the health policy community that managed competition contains perverse economic incentives. These incentives do more than misallocate resources. They create ominous risks for the health and safety of patients with serious medical conditions. Consider the editorial in Monday’s Wall Street...
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