February 1, 2003
Risk segmentation and the consequent wide variation in premiums create at least two kinds of problems. First, some high-risk people are not able to afford coverage. Second, the wide premium spread requires some people to pay much more than others for identical coverage.
June 1, 2009
This article describes underlying problems in the markets for small group and individual insurance appraises current methods of subsidizing insurance for high-risk individuals and discusses how risk adjustment addresses conflicts between the group and individual insurance markets.