AmericanAcademyOfActuaries

The Academy's premium estimates for the Community Living Assistance Services and Supports (CLASS) Act were cited. The Academy wrote that actuarially sound premiums for the new long-term care program could range from $125 to $160 per month.

Academy Multiemployer Plan Subcommittee Chairperson Eli Greenblum discussed the current state of multiemployer pension plans. Greenblum said that "many of the industries in which multiemployer plans are prevalent are hurting" and that the plans have limitations regarding how they are funded.

The Academy Medical Loss Ratio Regulation Work Group's April 28 letter to the National Association of Insurance Commissioners (NAIC) regarding the potential disruption to the individual health insurance market resulting from new medical loss ratio requirements was cited in the NAIC's report to the U.S. Department of Health and Human Services. The NAIC cited scenarios described by the Academy on ways that inappropriate medical loss ratio requirements could disrupt the individual market prior to 2014.

Academy Life Products Committee Chairperson Cande Olsen was quoted from her testimony to the National Association of Insurance Commissioners during a May 20 public hearing regarding stranger originated/owned life insurance (STOLA). Olsen told commissioners that if the selling of variable annuity contracts with guaranteed minimum death benefits to terminally ill people becomes more prevalent, companies will need to increase charges or institute underwriting because of the additional risks and their costs.

The Academy's Senior Health Fellow Cori Uccello discussed the effects of bringing young people into the health care market -one of the most vital components of health care reform. She said that young people, on average, have lower medical spending costs and are a lower risk than older people. Uccello said that the new health care reform law brings in young people and that helps achieve a broad cross-section of risk and stabilizes the risk pool over time.

Academy board member Ron Gebhardtsbauer discussed different proposals to increase Social Security's retirement age, a reform option that the Academy has advocated should be included in any reform package.

The Academy was cited as the source of various life expectancy and longevity statistics for average 65-year-old males and females.

An Academy white paper on systemic risk regulation was discussed and Academy Financial Regulatory Task Force Chairperson Jesse Schwartz was quoted from a related Academy news release. Schwartz said that a federal systemic risk regulator would be best-positioned to coordinate at a national level and across international lines to monitor and manage systemic risk.

The Academy Medical Loss Ratio Regulation Work Group's letter to the National Association of Insurance Commissioners regarding the potential for disruption to the individual health insurance market resulting from new medical loss ratio requirements was discussed. The work group asked regulators to consider options for adjusting the medical loss ratio calculation method for individual market products.

The Academy was mentioned for warning about possible adverse selection issues with Community Living Assistance Services and Supports (CLASS) Act.

The Academy was cited as source of various life expectancy and longevity statistics for average 65-year-old males and females.

The Academy provided various life expectancy and longevity statistics for average 65-year-old males and females to show that retirees may live a lot longer than they expect and could potentially outlive retirement savings.

The staff of the U.S. House Energy and Commerce Committee said that independent experts from the Academy had confirmed its findings that companies that posted one-time, non-cash charges against earnings--resulting from a section of the new health care reform law that eliminates a tax deduction for providing retiree drug benefits--had acted properly and in accordance with accounting standards.

Academy Senior Health Fellow Cori Uccello encouraged regulators to strengthen the individual health insurance coverage mandate contained in the Patient Protection and Affordable Care Act to limit adverse selection. She said this could be done by limiting participants' ability to jump plan levels during enrollment periods.

The Academy's critical issues in health reform paper on the Community Living Assistance Services and Supports (CLASS) Act was cited. The Academy wrote that actuarially sound premiums for the new long-term care program could range from $125 to $160 per month.

The Academy Life Practice Council's April 6 webinar on principle-based approach updates from the March 2010 National Association of Insurance Commissioners meeting was discussed along with comments from panelists.

The Academy was cited for expressing adverse selection concerns regarding the Community Living Assistance Services and Supports (CLASS) Act. The Academy said that the adverse selection issues are likely to lead to high premiums and could threaten the viability of the program.

The Academy was cited from its critical issues in health reform paper, Gender Consideration in the Voluntary Individual Health Insurance Market. The Academy wrote that before age 50, women "generally incur higher medical spending than men, even excluding the costs of normal maternity care. This difference in spending translates to higher health insurance premiums on average for women."

The Academy's July 22 letter to congressional leaders regarding the Community Living Assistance Services and Supports Act (CLASS Act) was cited and linked. The Academy letter contained recommendations for improving this federal long-term care program and an actuarial analysis conducted by a joint work group of the Academy and Society of Actuaries.

The Academy Life Products Committee's Jan. 10 comments to the Interstate Insurance Product Regulation Commission (IIPRC) Management Committee regarding guaranteed living benefits for individual deferred annuities was quoted in article reporting on the IIPRC Product Standard Committee's decision in favor of a standard allowing annuity carriers to terminate the living benefit of a contract after a change of the contract's ownership.

The Academy said that the cost of living for single retirees is about 40 percent higher than for couples (on a per person basis) in an article about retiring as a single. Cost of living is higher for singles because couples can share housing and other expenses.

Sen. Lamar Alexander cited a Nov. 20 Academy comment letter regarding health care reform legislation during a Senate session (minute 41). Sen. Alexander also entered the Academy's letter into the Senate record.

The Academy was cited in an ongoing, interactive Web feature that tests one's ability to parse through headlines and sound bites to find the truth about health care reform. The Academy was a source on reform components such as an individual health insurance coverage mandate and the Community Living Assistance Services and Supports (CLASS) Act.

Academy Senior Health Fellow Cori Uccello discussed how to strengthen an individual health insurance coverage mandate. She said that a coverage mandate could be strengthened by providing non-financial incentives to purchase coverage, such as offering health insurance only during an annual open-enrollment period so that people cannot wait until they are sick to purchase insurance.

Academy Senior Pension Fellow Frank Todisco warned future retirees that there are significant risks that they must appropriately plan for and insurance against.

An Academy report reviewing consumer-driven health plan (CDHP) studies was cited by an on-air guest, who said the Academy found that CDHPs can save as much as 12 to 20 percent in health care costs in the first year.

The Academy's May 2009 monograph on consumer-driven health plans (CDHPs) data was cited by Sen. John Cornyn during Senate session (minute 75). According to research studies reviewed by the Academy's CDHP Work Group, these plans can save as much as 12 to 20 percent in health care costs.

Academy Senior Health Fellow Cori Uccello explained the basics of determining health insurance premiums. She said it begins with ensuring that total premiums collected are adequate to cover claims and expenses. Audio also available.