Reinsurance, also known as insurance for insurers, is a mechanism aimed at reducing an insurer’s financial liability associated with unexpectedly high health care costs. The availability of reinsurance may be one of many factors an insurer considers in assessing potential exposure to loss in a certain market. This may affect whether or not to enter a market, what types of products to offer, and how premiums are set. Reinsurance may be structured and funded in a variety of ways. The potential impact of reinsurance on health insurance premiums is highly dependent on the amount of funds available for reinsurance as well as whether the program is funded internally or externally.