News Headlines Article

Critics say ACA ‘risk’ strategies are having reverse Robin Hood effect
Washington Post

In early summer, a small, nonprofit HMO in Birmingham, Ala., got a surprise from the federal government: a bill for $1.7 million. The charge, which amounted to a startling two-fifths of the premium money that Viva Health had collected from 1,100 customers, stemmed from an obscure part of the Affordable Care Act designed to support health plans with lots of sick, expensive customers by giving them money from plans with healthier customers. The goal is to help keep insurance markets stable by sharing the “risk” of sicker people and removing any incentive for plans to avoid individuals who need more medical care.