Health insurers -- and other insurers -- have persuaded state insurance accounting regulators to rethink proposed rules for reporting on the money coming from the big new federal health risk management programs.
Life insurers and property-casualty insurers joined health insurers in arguing that the original proposal could have eventually hurt many different types of insurers, not just health insurers, by creating a new class of "nonadmitted assets": "difficult to estimate" assets.
Regulators admit an asset when they believe an insurer can probably use the asset to meet obligations to policyholders. An insurer may have little or no ability to use nonadmitted assets when showing they meet a state's solvency standards.
Drafters of PPACA created three new programs -- the "Three R's programs" -- to help health insurers handle big, PPACA-related shifts in medical claim risk: a temporary reinsurance program, the temporary risk corridors program, and the permanent risk adjustment program.