So how do the carriers fund these pools if not through everyone's insurance premiums?
What does this approach really buy us?
By assessing a pennies-per-insured fee, on every covered life. This applies to group, individual, self-insurers, all types of coverage....all carriers doing business in the state must participate. This was the Mississippi model.
The New Hampshire HRP started at a dime, went down to three cents, then to a penny...and still had too much money in the pool reserve.
What does this approach really buy us?
It leaves you with a robust market of healthy people who might get sick, and some people with claims who have gotten sick. It can can premiums in half.
Premiums are almost completely based on claims, by law...like 75 to 85%.
The HRP patients (about 1% of the insured population) would have generated and consumed about half of the claims.