To facilitate comparison across plans, the Centers for Medicare and Medicaid Services (CMS) categorized all plans into four tiers: bronze (least comprehensive), silver, gold, and platinum (most comprehensive), with minimum
actuarial values of 60, 70, 80, and 90 percent, respectively.
So the uncertainty of future interest rate influences the accuracy of its
actuarial values deeply.
What have not yet been published, however, are
actuarial values, a measure of the generosity of health plans.
Sponsors have been taking positive steps to keep their plans healthy, and the erosion is mostly the result of the current market regime-namely the low interest rates that place higher
actuarial values on pension liabilities.
"If the city of Worcester continues with a pay-as-you-go approach, annually addressing only existing retiree health care costs instead of funding future retiree health care obligations, its liability increases each year as
actuarial values rise and the
actuarial value of assets remains static or declines,'' The Research Bureau stated in a recent briefing paper.
The ratio of Plans' Gold/Silver premiums in Scenario 4 with risk adjustment ($408.989/$357.78 = 1.143) reflects the ratio of their
actuarial values (0.8/0.7 = 1.143).
For example, the median funded position, based on
actuarial values of assets and liabilities of the 126 plans reported in the National Association of State Retirement Association Public Fund Survey, was more than 100 percent at the end of fiscal 2000; (5) it was 75.2 percent as of fiscal 2011.
We then explore the extent to which employers and employees will respond to the excise tax by choosing less-expensive plans with lower
actuarial values. Finally, considering the Congressional Budget Office (CBO) has tentatively suggested that the Affordable Care Act could reduce federal budget deficits by roughly $1.35 trillion in the ensuing decade after the initial 10-year budget window, we seek to determine how much projected deficit reduction might be attributed to the Cadillac tax.
The requirements for defined contribution schemes remain unchanged, but for defined benefit schemes, FRS 17 abandons the use of
actuarial values for assets in a pension scheme in favour of a market-value-based approach.
Effective May 1, 1999,
actuarial values to be used based on life expectancy have been revised to comply with the findings in the 1990 census.
It is therefore possible to calculate the contributions and pensions in
actuarial values for each cell of the distribution (some of these calculations are contained in the publications of the pension funds).
We present three specifications that include the role of health: (1) one that uses health-adjusted wages, (2) one that uses three measures of health: one based on ADLs, an indicator for mother's self-reported poor or fair health, and an indicator for children's disability status, along with health-adjusted wages, and (3) one that adds the
actuarial values of Medicaid and private insurance [TABULAR DATA OMITTED] to these four variables.
