Hannover Re US Closes Aggregate Excess of Loss Transaction with Next Generation ACO
By a
The Next Generation ACO Model aligns with the
To measure success, ACOs are assigned a benchmark, which reflects the historical claims utilization of their member population. An ACO realizes shared savings, along with bonus incentives, when claims fall below the benchmark. When claims exceed the benchmark, they take downside risk and must cover the excess costs. Aggregate excess of loss protection for ACOs is designed to limit providers' exposure to financial loss related to downside risk under two-sided risk arrangements.
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