Death Spirals

A death spiral occurs when pricing in an insurance market spins out of control. If an insurance pool turns out to be more expensive than originally thought, the insurer must raise its premiums. As the premium rises, some healthy people drop their coverage. With a sicker group of enrollees, the average cost per enrollee will [...]



via John Goodman's Health Policy Blog http://healthblog.ncpa.org/death-spirals/