Centers For Medicare & Medicaid Services Fact Sheet: Risk Corridors & Budget Neutrality

On April 11, 2014, the Centers for Medicare and Medicaid Services (CMS) released this fact sheet about the temporary risk corridor program to protect Qualified Health Plans (QHPs) sold through state and federal health insurance marketplaces. The risk corridors protect QHPs from losses due to unknown health needs and utilization patterns of the formerly uninsured population enrolled in QHPs. When it was created by the Patient Protection and Affordable Care Act of 2010, the risk corridor program for QHPs was intended last for three years. It would help cover QHP losses due to higher than expected utilization, with some of . . .