AmericanAcademyOfActuaries

The Academy Public Plan Practices Task Force's report, "Risk Management and Public Retirement Systems," was cited in an op-ed. As described in the commentary, the report said that "states need to identify conflicts of interest within the system, clearly establish rules to ensure adequate funding and educate administration officials and unions about the economic consequences of policy."

Steve Schoonveld, an Academy representative on long-term care issues, discussed the Community Living Assistance Services and Supports (CLASS) Act. Schoonveld said that adding eligibility restrictions might limit adverse selection, which is one of the primary concerns that actuaries have with the federal long-term care program.

Rep. Frank Guinta explained a "defined contribution" approach to Medicare reform, as described in the Academy's Medicare Reform Options monograph. According to the Academy, a defined contribution approach means that Congress would define the level of Medicare funding provided to seniors rather than define the level of benefits provided to them. Seniors would receive a fixed dollar amount toward their health coverage, rather than receive guaranteed benefits. The individual would have to make up any difference in the cost of the private insurance plan they have chosen and the government contribution. 

The Academy Consumer-Driven Health Plans (CDHP) Work Group's analysis of CDHP research studies was cited in an op-ed. According to the work group's analysis, high-deductible plans reduce costs between 12 and 20 percent in the first year and between three to five percent annually in the subsequent years.

An Academy letter to congressional leaders on health care reform was cited in an op-ed. Regarding the Community Living Assistance Services and Supports (CLASS) Act, the Academy said that given the way the program is structured, "severe adverse selection would result in high premiums that are likely to be unaffordable for much of the intended population."

Academy President-elect David Sandberg discussed the Academy Public Plans Practices Task Force report on "Risk Management and Public Retirement Systems." Sandberg said that it is important for state and local officials to fully understand their risk exposure.

The Academy's "Actuarial State of the Union," in which the Academy recommended increasing the retirement age to restore Social Security's actuarial balance, was discussed. The Academy said that life expectancy improvements have lead to an expansion of lifetime benefits and system costs, and an increase in the retirement age would stem this cost growth. The Academy also said it hopes that policymakers will focus on new policies to better enable employees and retirees to manage longevity, inflation and investment risks.

On the day before the president's State of the Union address, Academy Public Interest Committee Chairperson Tom Terry discussed why increasing the retirement age should be included in any Social Security reform package. "Increasing life expectancy has led to an expansion of the program's lifetime benefits and system costs, but an increase in the retirement age would help curb this cost growth," he said.

The Academy was cited as the source of an estimate derived from its Social Security Game. According to the Academy's Game, increasing the annual earnings cap on wages subject to Social Security tax to include 90 percent of all wages would reduce Social Security's shortfall by about 37 percent.

Two Academy letters to policymakers addressing the Community Living Assistance Services and Supports (CLASS) Act were cited. The Academy noted actuarial concerns with the long-term care prog

Academy Pension Accounting Committee Chairperson Steve Alpert quoted as a major telecommunications company moves away from smoothing pension gains and losses.

Academy Health Practice Council Vice President Tom Wildsmith discussed the role of genetic information in the health insurance market. Wildsmith explained why health insurers were not considering genetic information, even before the Genetic Information Nondiscrimination Act was signed into law.  

The Academy's Dec. 13 news release, which emphasized the importance of meaningful and consistent disclosures by public pension plans, was discussed. Academy President Mary Frances Miller and Academy President-elect Dave Sandberg were quoted from the news release. 

The Academy was cited as the source of longevity data for average 65-year-old males in 1945 and 2011. According to the Academy, a 65-year-old male in 1945 would live on average about 13 more years, but in 2011, an average 65-year-old male can expect to live another 18 years.

The Academy's concerns regarding the Community Living Assistance Services and Supports (CLASS) Act were cited.

The Academy's letter to the National Commission on Fiscal Responsibility and Reform was mentioned in article that discussed the commission co-chairmen's proposal. The Academy's letter encouraged the commission to include an increase in the Social Security retirement age in its final recommendations.

Academy Senior Life Fellow Nancy Bennett discussed emerging risk management trends in the life insurance market. Bennett said that for the most part, life insurers largely avoided the conflagration that consumed investment banks during the financial crisis. But, she also said, that while life insurers faired better than investment banks, they cannot rest on their laurels as some deficiencies were exposed.

The Academy's letter to the National Commission on Fiscal Responsibility and Reform was discussed. The Academy's letter encourages the commission to include an increase in the Social Security retirement age in its final recommendations.

The Academy's letter to the National Commission on Fiscal Responsibility and Reform was discussed, and Academy Public Interest Committee Chairperson Tom Terry was quoted from the letter. Terry said that the Academy supports an increase in the Social Security retirement age.

Andrew Biggs, the former deputy commissioner of the Social Security Administration, blogs about the Academy's letter to the National Commission on Fiscal Responsibility and Reform. The Academy's letter encourages the commission to include an increase in the Social Security retirement age in its final recommendations.

The Academy Medical Loss Ratio (MLR) Regulation Work Group's Oct. 8 letter to regulators regarding the National Association of Insurance Commissioner's exposure daft of a regulation for MLR rebates was cited and linked. The work group wrote that, "Increasing the magnitude of the credibility adjustments may help keep insurance attractive to smaller competitors, which would enhance consumer choice."

Academy board member and former Senior Pension Fellow Ron Gebhardtsbauer explains why he believes that Social Security will still be around, even after its trust fund is projected to be exhausted. Gebhartsbauer said that he believes that policymakers will act before its too late.

The Academy Medical Loss Ratio (MLR) Regulation Work Group's Oct. 8 letter to regulators regarding the National Association of Insurance Commissioner's exposure daft of a regulation for MLR rebates was cited. The work group wrote that, "Increasing the magnitude of the credibility adjustments may help keep insurance attractive to smaller competitors, which would enhance consumer choice."

Academy Public Interest Committee Chairperson Tom Terry was quoted from his Sept. 20 op-ed published by U.S. News & World Report. Terry wrote that because of "increased life spans, increased working capabilities, and a structural demand for experienced labor -- the demographic case for an increase in the Social Security retirement age is compelling. We need to recognize that not just life span, but the nature of working and of the American life have all changed since the retirement age was last amended in 1983."

Tom Keller, a member of the Academy's Medical Loss Ratio Regulation Work Group, discussed medical loss ratio regulations and credibility adjustments to account for statistical fluctuations.

Academy Public Interest Committee Chairperson Tom Terry was quoted from his Sept. 20 op-ed published by U.S. News & World Report. Terry wrote, "Today, the average retiree lives about 45 percent longer than a retiree did in 1940, and the actuaries at the Social Security Administration are projecting that retiree life expectancies will continue to improve in the years ahead. As life expectancy pushes upward, the Social Security's program's costs will very likely exceed what its scheduled financing can support."

Academy Senior Pension Fellow Frank Todisco discussed how the economic recession affected public pension plans.

Academy Benefit and Eligibility Changes Work Group Chairperson Karen Bender quoted from the work group's Aug. 27 letter to the U.S. departments of Health and Human Service, Treasury, and Labor in response to interim final regulations on the elimination of preexisting conditions, the elimination of lifetime limits, restrictions on annual limits, and other patient protections.