The presenters in this session will highlight the SOA’s work on an updated Medicaid underwriting margin model. This research project includes the model along with a set of instructions and a paper describing the key components of underwriting margin, including cost of capital and risk margin. The model was created as a tool for Medicaid actuaries representing both MCO and State principals to determine appropriate underwriting margins components within Medicaid managed care rates.
Understand a brief description of the motivation for and underlying theory behind the model. Walk through different model inputs and run through some realistic scenarios that Medicaid actuaries may encounter in where they operate.
By attending this session you will be able to:
• Understand the role that Medicaid underwriting margin plays in Medicaid rate setting.
• Understand the key components of Medicaid underwriting margin.
• Understand the factors that necessitate underwriting margins.
• Understand how to incorporate appropriate Medicaid underwriting margin levels in Medicaid rate setting.