We recently talked to some local health care advocates to find out how Springfield regulators and lawmakers should structure Illinois' forthcoming health insurance exchange to ensure the federal health reform package works for state residents. One issue we didn't cover was the danger of "adverse selection," or the separation of healthier and less-healthy people into different insurance systems. If too many low-cost people enroll in plans offered outside the government-regulated clearinghouse, it will drive up costs for consumers and small businesses who do purchase coverage through the exchange.

How can Illinois avoid this problem? Sarah Lueck with the Center for Budget and Policy Priorities outlined some smart protections in a new paper.