After the Reinsurance Is Gone: A New Challenge for New York's Individual Market

The Transitional Reinsurance Program (TRP) has been an important feature of the Affordable Care Act, making health insurance more affordable for consumers by reducing annual premium increases. However, this federal program is set to expire in 2016. New York policymakers face several options in continuing the TRP’s premium-stabilizing effects; none would be easy, some would require federal cooperation, and all would involve difficult choices among competing priorities.

This Big Picture snapshot report looks at how the TRP works, explains the “risk corridor,” and explores options for what might succeed the program.

After the Reinsurance Is Gone is the first in a series of snapshots highlighting specific issues related to the Affordable Care Act as a complement to UHF’s annual Big Picture chartbook on health plan operations. The second, The Next Wave, considers the impact of two proposed mergers on New York’s insurance market. The third, New Life—and Covered Lives, examines steps New York took to improve its individual market. The fourth, New York’s Temporary Premium Subsidies, lays out lessons to be learned from a creative and effective temporary subsidy program. The Big Picture VI, a comprehensive overview of New York’s insurance markets, analyzing enrollment and financial data across health plans and lines of business since implementation of the ACA, is available here.

Read the related press release.

Support for this work was provided by the New York Community Trust. Support for the United Hospital Fund’s Health Insurance Project is provided by EmblemHealth.