Today the U.S. Department of Health and Human Services released a final rule implementing standards set for States related to reinsurance and risk adjustment, and for health insurance issuers related to reinsurance, risk corridors, and risk adjustment. These programs, created as provisions under the Affordable Care Act (ACA), are intended to mitigate the impact of potential adverse enrollment selection and stabilize premiums in the individual and small group markets as insurance reforms and the Exchanges are implemented, which will begin in 2014. These three programs will help ensure that insurance plans compete on the basis of quality and service as opposed to attracting the healthiest individuals (known as adverse selection). Better competition leads to improved coverage so that both healthy and sick consumers can pick the best plan for their needs. Click here for a summary of risk adjustment, reinsurance, and risk corridors.