ICHRA’s – The Power of Risk Pooling
“The Affordable Care Act (ACA) requires that insurers use a single risk pool when developing premiums. The single risk pool incudes all ACA-compliant plans inside and outside of the marketplace/exchange within a state. In other words, insurers must pool all of their individual market enrollees together when setting the prices for their products. This means that the costs of the unhealthy enrollees are spread across all enrollees.” – American Academy of Actuaries
ACA Health Insurance Premiums for 2025
“Pressures on ACA-market premiums are relatively mild compared to some previous years, but there is some upward pressure from higher prescription costs and, to a lesser degree, inflation,” said Academy Senior Health Fellow Cori Uccello. “Changes in risk pools are not seen as likely to have a major effect on next year’s premiums overall, though it’s always important to keep in mind that individual insurers may be affected by specific factors, trends, and developments in their state or regional markets.” American Academy of Actuaries
