ACTUARIES IN THE NEWS

Karen Bender, the chairperson of the Academy's Individual and Small Group Market Task Force, discussed the development of the essential health benefits package, a set of health care service categories that must be covered by plans offered through the state health insurance exchanges.

The Academy's Capitol Hill briefings on the 2011 Medicare and Social Security trustees' reports were discussed.

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The Academy's Pension Assistance List program was mentioned for providing free actuarial expertise to workers who need help checking pension calculations.

American Academy of Actuaries Senior Health Fellow Cori Uccello discussed the 2011 Medicare Trustees Report. Uccello said that the trustees determined that for Medicare to stay solvent for the next 75 years, it would have to immediately raise payroll taxes by 24 percent, or cut current benefit payments by 17 percent.

American Academy of Actuaries Senior Health Fellow Cori Uccello discussed the 2011 Medicare Trustees Report. Uccello said that the trustees determined that for Medicare to stay solvent for the next 75 years, it would have to immediately raise payroll taxes by 24 percent, or cut current benefit payments by 17 percent.

In a preview of the 2011 Social Security and Medicare trustees' reports, Academy Social Insurance Committee Chairperson Janet Barr discussed the 2010 Social Security report's projection that the Disability Insurance trust fund would be exhausted by 2018.

Academy Pension Accounting Committee Chairperson Steve Alpert discussed how public pension plan funding would be affected by a move to a fair-value accounting approach.

The Academy's Pension Assistance List program was mentioned for providing free actuarial expertise to workers who need help checking pension calculations.

The Academy said that the cost of living for single retirees is about 40 percent higher than for couples on a per person basis because of economies of scale.

The Academy was mentioned for its efforts to design a standards framework to provide all stakeholders with a clear understanding of the long-term costs of public pension benefits. The Academy's board asked the Actuarial Standards Board in October 2008 to develop standards for consistently measuring the economic value of pension plan assets and liabilities.

The Academy's Public Plans Subcommittee Chairperson Bill Hallmark discussed early retirement incentives' affect on public pension financing. Hallmark said that most early retirement incentives are unlikely to have a "significant impact" on pension systems' fiscal health because costs tend to be spread over time.

The Academy’s April 4 Capitol Hill briefing on retirement risks was cited. The Academy provided a hypothetical example to demonstrate “timing risk.” In the example, a worker who retired on Jan. 1, 2009 as opposed to Jan. 1, 2008 would have his or her annuity reduced by 26 percent because of declining investment account values and higher annuity purchase rates resulting from declining interest rates.

The Academy provided a list of policy options to strengthen the individual health insurance coverage mandate contained within the health reform law. Academy Senior Health Fellow Cori Uccello explained how these options also can serve as alternatives if the mandate is removed from the law.

The Academy's Pension Assistance List program was mentioned for providing free actuarial expertise to workers who have questions regarding their pension plans.

Sen. John Thune cited the Academy's adverse selection and sustainability concerns regarding the Community Living Assistance Services and Supports (CLASS) Act in his op-ed about the CLASS program.

The Academy's adverse selection and sustainability concerns regarding the Community Living Assistance Services and Supports (CLASS) Act were cited, and the Academy's July 2009 analysis of the federal long-term care program was referenced.

The Academy provided several policy options to strengthen the individual health insurance coverage mandate contained with the health reform law. These options also can serve as alternatives if the mandate is removed from the law.

Academy Senior Health Fellow Cori Uccello discussed the importance of the individual health insurance coverage mandate contained within the health reform law. She said the mandate helps limit adverse selection by encouraging enrollment of low-risk individuals.

Academy Senior Health Fellow Cori Uccello discussed the importance of the individual health insurance coverage mandate contained within the health reform law. She said the mandate helps limit adverse selection by encouraging enrollment of low-risk individuals. Uccello also said that alternatives would be necessary if the mandate is removed from the law, but that these policy options should also be considered to strengthen the mandate if it is not removed.

Academy volunteer Al Schmitz's testimony during a congressional subcommittee hearing on the Community Living Assistance Services and Supports (CLASS) program was previewed and the Academy's FAQ on the CLASS Act was cited.

Academy meetings, where discussions have occurred about alternatives to the individual health insurance coverage mandate contained in the Patient Protection and Affordable Care Act, were referenced.

Academy Health Practice Council Vice President Tom Wildsmith was the guest expert during a live web chat. Wildsmith answered a host of questions ranging from how health insurance companies determine premiums to how health care reform will affect insurance markets.

An op-ed cited the Academy’s issue brief on The Value of Defined Benefit Plans. The brief states that the management of investments is more efficient in a defined benefit plan than in a defined contribution plan and this efficiency can often lead to higher returns. 

Academy Health Practice Council Vice President Tom Wildsmith discussed Academy volunteers’ visit to Washington to confer with policymakers on health care reform implementation. He said one of the most frequently asked questions was about alternatives to the individual mandate. Wildsmith said that there is "no real silver bullet," but that a combination of things would have to be done, such as open enrollments, waiting periods, and penalties for late enrollment.

The Academy's FAQ on the Community Living Assistance Services and Supports (CLASS) Act was linked, and co-contributor Steve Schoonveld discussed the actuaries' adverse selection and affordability concerns regarding the federal long-term care program.

Academy leaders cited for their comments on the Community Living Assistance Services and Supports (CLASS) Act. The actuaries are concerned that the federal long-term care program, established by the health care reform law, will attract a disproportionate share of higher-risk individuals and will lead to adverse selection issues.

Academy volunteer and long-term care expert Steve Schoonveld discussed changes proposed by the Department of Health and Human Services regarding the Community Living Assistance Services and Supports (CLASS) Act. He said the proposal would alleviate many of the actuaries' concerns with the health care reform provision that establishes a federal long-term care program. Schoonveld said that he remains concerned, however, about affordability issues that could limit participation.

Academy volunteer Steve Schoonveld discussed the average costs of various long-term care services.