Reinsurance Could Aid in Costs That Cause Higher Premiums

Rising Insurance Premiums Spur Talk of Changes to Affordable Care Act
– The Wall Street Journal

The Wall Street Journal quoted Manatt’s Joel Ario, a managing director with Manatt Health, in an article about the discussion surrounding changes to the Affordable Care Act that are in response to rising insurance premiums. Pressure is coming from insurers, who say without reform they will be forced to pull products and raise prices.

“Some form of reinsurance is, I think, important to continue,” said Ario, who also suggested extending the health law’s three-year reinsurance program, which ends this year. The program redistributes fees collected from employer, union and insurance company plans, to help mitigate the heavy costs that trigger higher insurance premiums.

Read the article here

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