New Findings on Insurance from Agency for Healthcare Research and Quality Summarized (Implications of State Reinsurance Programs for Marketplaces): Insurance

Health Policy and Law Daily

2026 APR 10 (NewsRx) -- By a News Reporter-Staff News Editor at Health Policy and Law Daily -- Researchers detail new data in Insurance. According to news reporting originating from Rockville, Maryland, by NewsRx correspondents, research stated, “Government-subsidized reinsurance can reduce insurers’ exposure to large health claims and can therefore make health insurance more affordable and attract more consumers. By mechanically transferring money from governments to insurers, public reinsurance can reduce premiums, but may also reduce premiums more than dollar-for-dollar if healthier consumers enroll or the insurance market becomes more competitive.”

Our news editors obtained a quote from the research from Agency for Healthcare Research and Quality, “We study 12 states that implemented, between 2017 and 2021, reinsurance programs for individual insurance purchased through the Marketplaces created by the Affordable Care Act. Using synthetic event study methods, we examine their impact on the distribution of premiums, the number of insurers, and enrollment. On average, these reinsurance programs decreased premiums by 9 to 19 percent in the first two years of their implementation but had no impact on insurer participation and minimal impact on enrollment in the Marketplaces.”

According to the news editors, the research concluded: “Our evidence suggests reinsurance mostly reduced premiums by reducing exposure to claims without more fundamental improvements in the Marketplaces.”

This research has been peer-reviewed.

For more information on this research see: Implications of State Reinsurance Programs for Marketplaces. American Journal of Health Economics, 2026. American Journal of Health Economics can be contacted at: Univ Chicago Press, 1427 E 60TH St, Chicago, IL 60637-2954, USA.

The news editors report that additional information may be obtained by contacting Steven C. Hill, Agency for Healthcare Research and Quality, Center for Financing Access and Cost Trends, Rockville, MD 20857, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1086/733523. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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