Quarterly report pursuant to Section 13 or 15(d)

Health Insurance Marketplace

v3.2.0.727
Health Insurance Marketplace
6 Months Ended
Jun. 30, 2015
Health Insurance Marketplace [Abstract]  
Health Insurance Marketplace
Health Insurance Marketplace

The Affordable Care Act (ACA) established risk spreading premium stabilization programs effective January 1, 2014 for the Health Insurance Marketplace product. These programs, commonly referred to as the “three Rs,” include a permanent risk adjustment program, a transitional reinsurance program, and a temporary risk corridor program. Additionally, the ACA established a minimum annual medical loss ratio for the Health Insurance Marketplace. Each of the three R programs are taken into consideration to determine if the Company’s estimated annual medical costs are less than the minimum loss ratio and require an adjustment to Premium revenue to meet the minimum medical loss ratio.

In June 2015, CMS released final results on reinsurance and risk-adjustment for the 2014 plan year. These final results had an insignificant impact to the Company for the 2014 plan year.


The Company's receivables (payables) for each of these programs are as follows ($ in millions):
 
June 30, 2015
 
December 31, 2014
Risk adjustment
$
(99
)
 
$
(44
)
Reinsurance
20

 
11

Risk corridor
(29
)
 
(9
)
Minimum medical loss ratio
(18
)
 
(6
)