Which program within the Affordable Care Act dealt with limiting insurer losses and gains beyond an allowable range?

The program within the Affordable Care Act that focused on limiting insurer losses and gains beyond an allowable range is the risk corridor program. This initiative was designed to stabilize premiums and encourage insurer participation in the marketplace by protecting them against unanticipated losses in the early years of the ACA.

The risk corridor program operated by sharing risk between insurers. If an insurance company incurred higher-than-expected costs for a plan year, the program would provide financial support to help mitigate those losses. Conversely, if an insurer made profits above a certain threshold, they would be required to pay back a portion of those gains. This approach helped to maintain a level playing field among insurers and ensured that they would not shy away from offering plans due to fear of excessive risk.

Other programs mentioned, while related to managing risk in different ways, serve different functions. The reinsurance program provided funds to cover costs for high-risk individuals, while the risk adjustment program transferred funds between insurers to compensate those that enroll sicker populations. The medical loss ratio program, on the other hand, mandates that insurance companies spend a certain percentage of premium dollars on medical care rather than administrative costs or profits. Each of these programs has specific objectives aimed at improving the health insurance marketplace, but the risk corridor program specifically addressed the