Mate List "Risk mitigation programs in the ACA"
Item 3 e) "Amounts from risk-adjustment and reinsurance programs are not included in this calculation" [Risk corridor calculation]
However F14 GHC Q6 c) has the allowed amount being calculated as the Allowable cost as incurred claims less Reinsurance and risk adjustment payments.
The target calculation is independent of risk adjustment and reinsurance, but the actual experience has it included.
After going back to my trusted Core Mate condensed outline: actual costs (net of risk adjustment and reinsurance payments)
The "this" in the Advanced Mate outline must be referring to the target, and not the actual cost.
On another note, the Condie solution has the target amount = Premium - Admin - 3% of (Premium-Admin)
Does anyone have an idea why that last piece is in there? I haven't seen that anywhere before and it isn't in the SOA solution.
Item 3 e) "Amounts from risk-adjustment and reinsurance programs are not included in this calculation" [Risk corridor calculation]
However F14 GHC Q6 c) has the allowed amount being calculated as the Allowable cost as incurred claims less Reinsurance and risk adjustment payments.
The target calculation is independent of risk adjustment and reinsurance, but the actual experience has it included.
After going back to my trusted Core Mate condensed outline: actual costs (net of risk adjustment and reinsurance payments)
The "this" in the Advanced Mate outline must be referring to the target, and not the actual cost.
On another note, the Condie solution has the target amount = Premium - Admin - 3% of (Premium-Admin)
Does anyone have an idea why that last piece is in there? I haven't seen that anywhere before and it isn't in the SOA solution.
Mate List on Risk Corridor seems inconsistent with F14 GHC Q6 c)
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