Actuarial Value

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Actuarial Value

In health insurance, the estimated percentage of a typical policyholder's medical bills that an individual plan is expected to pay. A policyholder may receive less than the actuarial value in coverage if he/she has few medical expenses (because the bills may not exceed the deductible) and may receive more than the actuarial value if he/she has numerous expenses. The actuarial value is considered a good baseline for the coverage most policyholders will receive most of the time. The Affordable Care Act of 2010 in the United States requires health insurance providers to calculate and publicize the actuarial value of each plan.
References in periodicals archive ?
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.