Which arrangement describes government as a partner with a private insurer?

• A. Partner with private insurer
• B. Exclusive insurer
• C. Competitor to private insurer
• D. Government as reinsurer for private market

Answer: (A)

Public-private collaboration in insurance means the government works with private insurers to deliver coverage and manage risk. In this setup, the government doesn’t run everything alone, nor does it simply compete with or backstop private insurers. Instead, it partners with private carriers, providing support such as subsidies, guarantees, or risk-sharing, while the private insurer handles underwriting, distribution, and claims administration. This arrangement lets public goals like broad access and affordability be achieved through private-sector efficiency and expertise.

Other arrangements don’t fit this idea: being the exclusive insurer would put the government solo; being a competitor implies rivalry with private carriers; acting as a reinsurer would mean mainly transferring risk behind the scenes rather than jointly delivering the product.