Sentence examples for risk equalization from inspiring English sources

A risk equalization system prevents insurers from "cherry picking" healthier customers.

Hence, if the share of elderly in a population grows over time (and thus average health care expenditures increase), this means that younger, healthier individuals have to contribute more to risk adjustment in order to achieve risk equalization.

Risk adjustment (or risk equalization) is a necessary means to prevent risk selection because individual health care expenditures can vary greatly and in part even predictably, whereas health insurance premiums do not [15].

McGuire et al. [25] and Beck et al. (Beck K, Buchner F, van Kleef R, von Wyl V: Theory of risk equalization: Are we on the wrong track? submitted) have provided methodologies for how to limit solidarity transfers within risk adjustment systems.

** Gross savings prior to risk equalization pooling.

Sections "Risk equalization", 'Transparency and consumer information', and "Market regulation" deal with risk equalization, the implications of transparency for clinical quality, and institutions for market regulation respectively.

Risk-equalization is technically demanding.

In Ireland, risk-equalization has improved significantly in recent years.

This issue is linked to some other preconditions: if risk-equalization is underdeveloped, this may dampen the incentives for selective contracting and efficiency.

Each insurer's revenues comprise an annual community-rated premium paid by enrollees, combined with a weighted payment from a risk-equalization fund to reflect individual patients' risk profile.

Until 2012 an ex-post (retrospective) risk-sharing scheme was in place, and this accounted for an estimated 25% of total risk-equalization payments in 2010 [ 14].