Health exchanges: Impact of health plan benefit changes on cost and utilization
ByMary Creten (van der Heijde), and Doug Norris
17 May 2011
Health exchanges: Impact of health plan benefit changes on cost and utilization
The Patient Protection and Affordable Care Act (PPACA) mandates changes to health insurance products if they are to be sold through an exchange starting in 2014. These benefit design changes will not only affect insurer cost, but may result in several other consequences—most notably changes in utilization. Insurers need to properly prepare for and manage the potential for increased utilization and adverse selection when designing plans for entry into a health exchange.