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  #11  
Old 08-20-2019, 10:30 PM
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Originally Posted by LICENSED TO ILL View Post
One of my clients insisted I use the B-F reserve method for health claims. That was a fun discussion that I lost.
I don't think it would work much better in the situation described by the poster (few historical exposure months and therefore a small triangle).

I'd probably use an exposure-based approach, such as trending pricing PMPMs or something, and then be really sensitive about pulling the fire alarm when things look like they're going off the rails.

And definitely split calculations by service category (at least facility, professional, drug) as Pamela suggests.
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Last edited by DoctorNo; 08-20-2019 at 10:34 PM..
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Old 08-21-2019, 10:47 AM
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Do you mind explaining why it's a bad method to use?
Its a blend of the triangle method and what you think the ultimate losses will be (usually someone else tells me what they expect it to be). I am better at estimating what it will be/should be rn with my methods.
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Last edited by LICENSED TO ILL; 08-21-2019 at 10:50 AM..
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