Risk Corridor Massacre

(sigh) Details to follow, but for the moment...

Utah insurance department confirms Arches will be the 10th health co-op to wind down. (cc: @charles_gaba)

— Adam Cancryn (@adamcancryn) October 27, 2015

@charles_gaba Yeah, insurance dept. just confirmed. Shooould be the last one, but we'll see

— Adam Cancryn (@adamcancryn) October 27, 2015

UPDATE: OK, here's the actual press release from the Utah Insurance Department, not that there's anything new here:

I've said before that there are a few areas of the ACA which I simply don't consider myself knowledgable enough about to try and explain to others in depth. One of these is the so-called "Cadillac Tax" on high-end employer sponsored insurance policies. The other (well 3 others, really) are the "3R" programs which were set up to try and smooth out the transition period for insurance carriers for the first few years. The "3 R's" are "Risk Adjustment", "Reinsurrance" and "Risk Corridors".

Since I don't know much about them, here's a quick explainer from the Commonwealth Fund. A summary version is below:

Risk adjustment is a process that deters insurance plans from trying to attract healthy enrollees (“cherry picking”), and protects companies that may—by chance or because of their particular benefits—attract sicker than average customers (“adverse risk selection”). Though the Affordable Care Act bans carriers from turning people down or charging them more based on their health, the incentive to attract healthier enrollees remains because healthier customers increase profits by reducing companies’ payouts.