definition for: #riskcorridors

The risk-corridor program was established under the ACA to help offset insurer losses in the first three years of the insurance exchanges. The program, which expires at the end of the year, was designed to discourage insurers from hiking premiums because of uncertainty in who would enroll in their plans. It works by requiring profitable insurers to pay funds into the program, while plans with higher medical claims receive money. A similar risk-corridor program exists in Medicare Part D, which was created by Republican President George W. Bush.