What is a feature of the risk adjustment program included in the Affordable Care Act?

The feature of the risk adjustment program included in the Affordable Care Act focuses on redistributing funds based on health risk. This program is designed to maintain stability in the insurance market by ensuring that insurers are not penalized or discouraged from covering individuals with higher health needs.

Under this program, premiums collected from healthier individuals can be used to assist those insurers that enroll a higher proportion of individuals with significant health conditions, thereby balancing the financial risk across the insurance marketplace. This risk adjustment is crucial for promoting competition among insurers while preventing adverse selection, where only the sickest individuals seek insurance coverage, leading to unmanageable costs for insurers.

By redistributing funds in this way, the risk adjustment program contributes to a more equitable and sustainable healthcare system, making it a vital component of the Affordable Care Act. This distinguishes it from other options, which focus on aspects like subsidies to low-income individuals, price controls, or guaranteed healthcare outcomes, none of which are features of the risk adjustment program specifically.