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What are the key issues around risk transfer under the ACA system? Ok some I alr

ID: 238302 • Letter: W

Question

What are the key issues around risk transfer under the ACA system? Ok some I already posted this question and someone already answered it but im still having trouble wrapping my head around this topic. I am not looking for the answer to the question im looking more for the meaning of what risk transfer is? i already googled, youtube, and read the term on my class book but im still not undersraing it I appologies if im not making any sense. My question is can you explain to me what the purpose is for the risk transfer under the ACA? or what it is? Thank you

Explanation / Answer

The purpose of risk adjustment is to lessen or eliminate the influence ofrisk selection on the premiums that plans charge. ... In our second companion paper, we described therisk adjustment model that is used to calculate risk scores. In this article we present the risk transferformula

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