Analysts at Standard & Poor aren’t even trying to estimate how much the new Patient Protection and Affordable Care Act risk management programs will help health insurers this year.
S&P analysts talk about the PPACA programs briefly in a review of U.S. health insurer credit quality, saying they don’t expect to know how the programs will really work until 2015.
PPACA’s reinsurance program is intended to protect individual carriers against the risk of insuring patients with big medical bills.
PPACA calls for the risk corridors program to protect carriers in the new PPACA exchanges against the effects of weak operating results.
The U.S. Department of Health and Human Services expects to collect $12 billion in PPACA reinsurance program fees from carriers for 2014.
PPACA says risk corridors program funding is supposed to come from carriers that do well.