Entries by David Anderson

Anti-ACA piccadores

It is becoming clear that there is a strategy to hamstring and hamper the ACA so there will be less public opposition to repeal because the law won’t be seen as delivering any benefits. But the hamstringing and hampering will not be great acts that immediately cripple the Exchanges but instead, small jabs and lances […]

Big Payer vs. Big Provider in the Bay State

The Boston Globe is reporting on some very interesting news: The state agency that spends more than $2 billion a year to provide health coverage to 436,000 public employees, retirees, and their families is pushing changes that would allow it to slash what it pays the most expensive hospitals, a drastic move to try to […]

Individualized risk adjustment and IBNR

This is a follow-up from yesterday’s post on the pragmatic barriers to effective and equitable individualized risk adjusted subsidies in a risk-rated individual market. There is another major problem, claims and diagnoses don’t come in instantly. Individual providers/hospitals/physician groups do not have a universal timeline to file claims. My kids’ pediatrician files claims within two days and […]

Sharks and sea monsters

Actuaries love dealing with risk. Actuaries hate dealing with uncertainty. Their tool kit of creating well structured problems with defined probability distributions and parameters falls apart when dealing with uncertainty. Barry Ritholtz had a good discussion on this distinction in 2012 regardin the stock market and political risk: When we don’t know what any future […]