Current Considerations for State Reinsurance Programs

A recent research article in Health Affairs argues that reinsurance programs reduce affordability and enrollment among low- to moderate-income people. The article explains a mechanism by which reinsurance can increase the net premiums of subsidized enrollees and offers empirical evidence of reduced coverage based on Georgia’s adoption of a reinsurance program in 2022.

The article raises important questions for state and federal policymakers considering whether to establish or extend reinsurance programs.