Use the concept of risk pooling to discuss the reasoning behind
the provision in the Patient Protection and Affordable Care Act
(PPACA) to create state-based health insurance exchanges, where
anyone (individuals or groups) would be eligible to purchase
affordable coverage. Why private insurers, often not willing to
sell insurance contracts to small employer groups before the
enactment of PPACA, may be more inclined to offer an “essential
benefits package” at affordable rates through such exchanges in the
near future?