2008 Exam, 12c

[Passacaglia]

Looks like the solution is not included in the SOA set. Does anyone want to share how they did it here?

[monkey2003]

i was wondering the same thing today when i was looking at this problem.. I also have absolutely no clue how to calculate this.. hah...

[mykem]

that really annoyed me after i spent 20 minutes calculating it out.

[MATE Seminars]

I've never tried posting an attachment on this board before, so hopefully this works. This is the way I solved this problem (see attached).

[Passacaglia]

The attachment worked -- only problem is that the answer doesn't match mine! I'll have to check it out when I get home.

[erosewater]

I remember spending a really long time on this one last time, and punching tons of numbers into the calculator. Looking at Mark's solution I clearly did not do it very efficiently. Got a 10 on the question, but wasted valuable time.

[Passacaglia]

I made some mistakes, then kept having to redo it as I realized other stuff. In the end, I still managed to do the 4-point math part in roughly 12 minutes, so the pace was good. I did it pretty much the same way as the attachment, but I forgot to divide by the coinsurance in the beginning, and to divide by 12 at the end. That's probably still good for 3 of the 4 points, right?

[LouWorm]

I solved this differently and, as a result, got a slightly higher answer. I wonder what folks think about it.

The big difference is that I assumed that the 80% that chose PPO would all be among the low-cost category. I made this decision based largely on the highly anti-selective nature of dental benefits, in addition to the fact that it is, after all, the conservative assumption. Incidentally, I think I do a little less math this way.

I end up with 54.42 PMPM.

Anyone think this approach is indefensible?

[LouWorm]

Oh, and I didn't say:

Thanks so much, Mark, for posting your solution.

[sideout1212]

Originally Posted by LouWorm

I solved this differently and, as a result, got a slightly higher answer. I wonder what folks think about it.

The big difference is that I assumed that the 80% that chose PPO would all be among the low-cost category. I made this decision based largely on the highly anti-selective nature of dental benefits, in addition to the fact that it is, after all, the conservative assumption. Incidentally, I think I do a little less math this way.

I end up with 54.42 PMPM.

Anyone think this approach is indefensible?

It says that the PPO utilization is 20% less in the PPO for Basic/Major so it sounds to me like your assumption is in conflict with this statement.