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Old 08-07-2009, 02:28 PM
tope tope is offline
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Join Date: Oct 2003
Posts: 552
Default Pricing with CPD Tables

..Claim Probability Distribution...aka Continous Tables

I am looking to price the impact of cutting a rate from 300% of Tarriff to 20% of Tarriff

Assuming Tarrif = $300

I am thinking of using the tables to price this as a benefit max of $900 vs $600 with 100% coinsurance up to the max, then find the value of deductible at each point...

Does this make sense to anyone or am I off the deep end?

I know I also have to consider utilisation impacts..which is more subjective
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