Camm explains that antiselection
can quickly skew risk assessment in underwriting.
There has, however, been a more subtle cost to the plan, and to the plan sponsor - antiselection
The new process maximizes detection of antiselection
and fraud while increasing underwriter efficiency.
In the past, many insurance regulators and insurers have argued that various types of health plan purchasing coalition proposals would lead to antiselection
programs, but Doak told Paul he thinks the purchasing coalition idea has some merit.
The PPACA risk-adjustment program is supposed to use cash from issuers of PPACA-compliant individual and small-group plans with low-risk enrollees to compensate issuers of PPACA-compliant plans with high-risk enrollees, to protect market players against antiselection
Nelson asked about strategies for controlling antiselection
in a health coverage system in which carriers must sell health coverage even to people with serious health problems.
Even if this assumption causes additional heterogeneity in the data, and therefore a certain amount of antiselection
, it is not as restrictive as it might seem.
On the other hand, online taking of risk histories is, in my view, Inadvisable for fully underwritten products, unless, of course, said products have been priced (into sales obscurity) to pacify actuarial apprehension for florid antiselection
and its aftereffects.
Gap-filler product sellers might eventually have to limit sales, especially if a prolonged individual major medical shutdown leads to antiselection
State, federal and exchange rules require insurers that offer both on-exchange and off-exchange versions of plans to make both versions the same, to avoid antiselection
health insurers 32 million new enrollees, more revenue, a closer relationship with the enrollees, and a chance to accept older, sicker applicants with less fear of antiselection
This underwriter would broadly define antiselection
as a state that exists when the proposed insured is aware of facts in his health habits (or lack thereof), medical history, avocations, and other scenarios that are intentionally not disclosed at the time of application.