Why repealing the ACA before replacing it won’t work, and what might | Brookings Institution

Publicly-funded reinsurance or well-funded high-risk pools would more directly subsidize the costs of the sickest people, whereas the ACA effectively requires healthy people to subsidize the sick (with protection for lower-income people through subsidies), which has proven difficult in the relatively small individual market, particularly in certain localities. Reinsurance or high-risk pools could make it possible to cover sicker individuals while keeping premiums sufficiently low in the individual market to attract healthier people.

Source: Why repealing the ACA before replacing it won’t work, and what might | Brookings Institution

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