[1] Risk corridors are found in Medicare Part D and the Affordable Care Act (ACA).
These risk corridors were intended to ensure that the program was financially viable for insurers, while also helping to keep premiums affordable for consumers.
If insurers' drug costs were lower than expected, however, they were required to pay a portion of the savings to the government.
This system was designed to encourage insurers to participate in the program and to minimize the risk of high premiums or financial losses due to drug price volatility.
[3] In 2014, Congress passed legislation that limited the federal government's ability to fund risk corridors.