Fundamentally, however, both Medicare and the ACA marketplaces deliver a public benefit – subsidized insurance – through private companies. Both programs provide critical and life-saving benefits to consumers that depend on them. In doing so, the programs must effectively manage markets to encourage competition among insurers, improve consumer choices, and mitigate the risk of adverse selection.
In implementing and managing the Medicare Advantage and Part D programs, policymakers have used a range of approaches intended to guarantee the markets' viability and long-term success. These include policies and strategies to encourage participation by insurance companies, keep premiums stable, and enhance enrollment. In this paper, the authors consider whether any of these policies or strategies could also be used to help stabilize the ACA marketplaces, and if so, what the pros and cons of doing so would be.
Read Full Article »