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Preferred term

risk adjustment  

Definition

  • Risk adjustment is a mechanism for spreading the cost of very high users of medical care among the rest of an insured population. The existence of a well-working risk adjuster would eliminate the incentive for insurers to seek to cover those who are least likely to need care and to shun those likely to get sick. [Source: Health Care Policy and Politics A to Z; Risk Adjustment]

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URI

https://concepts.sagepub.com/social-science/concept/risk_adjustment

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