Description: Exploration of sources of volatility in retiree health valuations, noting how volatility arises and might be mitigated, with discussion of valuation parameters more problematic for retiree health benefits than for pensions. Three significant influences on retiree health valuation volatility are covered-- changes in benefit level, fluctuations in cost level, and alterations in eligibility for, or duration of, benefit – and attention focused on the last two. Specific conclusions result in recommendations, which are supported by practical examples contrasting volatile measurement results with those likely from the recommended practices. Theoretical discussion includes health claim variation, health trend usage, financial economics, option pricing, discount rates, and deterministic vs. stochastic modeling.

Description: Presented at May 2000 Spring Meeting. The Balanced Budget Act of 1997 dramatically changes the competitive landscape for Medicare products by establishing the Medicare+Choice program. This session recaps the Balanced Budget Act's impact on payment rates for capitated plans and the effects that the changes have made on benefit design and enrollment trends in certain geographical areas.

Description: Article about the future roles in health insurance.