### Question
How does QUALITY, AFFORDABLE HEALTH CARE FOR ALL AMERICANS define applicable reinsurance entity?


### Answer
Under *42 U.S.C. § 18061*, **applicable reinsurance entity** is defined as:

> a not-for-profit organization—


(A) the purpose of which is to help stabilize premiums for coverage in the individual market in a State during the first 3 years of operation of an Exchange for such markets within the State when the risk of adverse selection related to new rating rules and market changes is greatest

#### Citation:
  - *42 U.S.C. § 18061*
  - Heading: **CHAPTER 157-QUALITY, AFFORDABLE HEALTH CARE FOR ALL AMERICANS > SUBCHAPTER III-AVAILABLE COVERAGE CHOICES FOR ALL AMERICANS > Part E-Reinsurance and Risk Adjustment**

