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Death spiral is a condition where the structure of insurance plans leads to premiums rapidly increasing as a result of changes in the covered population. It is the result of adverse selection in insurance policies in which lower risk policy holders choose to change policies or be uninsured.
It creates a demand for insurance which is positively correlated with the insured's risk of loss. [3] For example, overall, non-smokers have a much lower risk of death than smokers of the same age and sex. If the price of insurance does not vary according to smoking status, then it will be more valuable for smokers than for non-smokers.
Death spiral may refer to: Aircraft flight: Graveyard spiral; Spiral dive; Death spiral (figure skating), an element of pair skating; Death spiral (insurance), an insurance plan whose costs are rapidly increasing; Death spiral financing; Ant mill, a behavioral phenomenon in ants; Death Spiral, a 1989 novel by John Ballem
Democrats in the House and Senate reintroduced legislation Thursday to permanently extend enhanced subsidies to help people afford insurance premiums on ObamaCare plans. Led by Sens. Jeanne ...
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Aetna CEO Mark Bertolini stated that ACA was in a "death spiral" of escalating premiums and shrinking, skewed enrollment. [68] However, a U.S. judge found that the Aetna CEO misrepresented why his company was leaving the exchanges; an important part of the reason was the Justice Department's opposition to the intended merger between Aetna and ...
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