The Supreme Court of the United States’ decision to uphold the Affordable Care Act will greatly affect the future of major medical health insurance in this country. There is tremendous revenue opportunity for insurers in the supplemental health care market in the immediate and long-term future. For firms considering taking advantage of this growing market, the time to act is now.
Whether you’re in the early stages of exploring the supplemental health care market, you’re interested in what your competition is doing, or you’re planning to update your accident and health (A&H) products to remain competitive, Perr&Knight can help. We are uniquely qualified and perfectly suited to assist property & casualty (P&C) companies with their supplemental health endeavors.
We’re a one-stop shop. Perr&Knight is the only firm of its kind offering a complete array of actuarial consulting, forms development, competitive intelligence and state filings services in all states and for all supplemental health products. We can provide assistance to companies throughout the entire product development cycle from competitor/market analysis and initial product pricing all the way to rate, rule and form filing support and product implementation. We can be ‘plugged’ into any or all components of the product development process to fit your unique needs.
Our consultants speak both P&C and A&H. We understand and can address the unique challenges faced by P&C companies as they enter the supplemental health market, from a lack of in-house expertise to differing terminology to resource constraints. In addition, because our staff includes both P&C and health consulting actuaries, product design consultants and state filings analysts, we are able to fully support hybrid products containing both P&C and A&H components such as Travel Insurance and Medical Excess Stop Loss.
Our experience is wide-ranging, recent and relevant. We have recently developed and launched several nationwide supplemental health products for our clients including Disability Income, Critical Illness, Major Medical Gap Coverage, Limited Medical Indemnity, Short Term Medical, Travel Accident, and AD&D. As a result, we’re tuned into the current marketplace and regulatory climate.
Evidence shows insurers may not have been properly prepared for our last major hard market, based on the staggering losses companies experienced. Four of the six largest underwriting losses in the history of the U.S. P&C insurance industry occurred during 1999-2002, with cumulative underwriting losses reaching $138 billion.
The commercial insurance market appears to be hardening again. The 2012 Risk and Finance Manager Survey found that nearly two-thirds (63 percent) of survey participants were either seriously or moderately concerned over a hardening P&C insurance market. Another one-third (32 percent) expressed slight concern.
Instead of just being concerned, take action. With the P&C market likely to continue hardening in 2012 and into 2013, it is imperative for insurance companies to stay ahead of the market and proactively manage the rates of their books of business. Perr&Knight is available and ready to assist with those reviews, as well as the preparation and submission of rate filings.
We take specific interest in commercial analysis, including these lines of business, among others:
Commercial Auto
Commercial Property (Fire, Allied Lines, and Inland Marine)
Commercial Multi-Peril
Medical Malpractice
General Liability
Professional Liability
Product Liability
Perr&Knight annually submits thousands of filings and is experienced in every line of business and in all states. We are among the top ten largest P&C actuarial consulting firms in North America, with skilled actuaries available to review program experience, analyze industry trends, recommend changes, and prepare filing packages. We are experts at submitting filings with a proven track record of receiving approvals, even in highly regulated states such as California, Florida, New York, and Washington.
If you’re interested in staying ahead of the market, Perr&Knight can help get you there. For more information, please download the following brochures:
On May 4, 2012, Florida Governor Rick Scott signed House Bill 119 into law. The bill, among many things, changes the way accident reports are taken, provides coverage limits, establishes a schedule of maximum charges, creates a list of diagnostic tests deemed not to be medically necessary, and controls attorneys’ fees. These changes impact both personal and commercial personal injury protection and affect insurers by:
Requiring all personal auto writers to submit a rate filing by October 1, 2012 and a second filing by January 1, 2014 that reflect the savings as a result of this bill.
Requiring commercial auto writers to evaluate the impact of the changes on their book of business and submit a filing if it is determined the filed rates are excessive after considering the impact of the bill.
Allowing insurance companies to limit payment effective July 1, 2012, as authorized by the new regulation. To do this, companies must include a notice at the time of policy issuance or renewal and the form must be approved by the Florida Office of Insurance Regulation.
The first personal auto rate filing in response to HB119 has already been submitted, as well as multiple personal and commercial auto form filings. Perr&Knight is actively monitoring filings to keep our clients up to speed on the competitor activity regarding the requirements resulting from HB119. Our Hot Filings Alerts provide that information on an ongoing basis.
If you are interested in obtaining assistance with these required changes, Perr&Knight is the ideal choice to make the process as simple as possible. Perr&Knight has distinguished itself as the only firm of its kind offering a complete array of actuarial consulting, competitive intelligence and regulatory compliance services. Our actuaries’ ability to leverage the knowledge and information available through our companion services distinguishes us from other actuarial firms.
With approximately 30 actuaries including nearly 20 Fellows and Associates of the Casualty Actuarial Society, Perr&Knight is among the top ten largest property & casualty actuarial consulting firms in the United States. Seven of our accredited actuaries are located in our Boca Raton, Florida office, making us the largest property & casualty actuarial consulting firm in the state of Florida. Perr&Knight’s actuaries have supported and submitted hundreds of rate filings for nearly all lines of business in Florida. We have extensive experience with obtaining approval for Florida auto filings and are already scheduled to work with other Florida auto writers to develop and submit their required changes.
The links below provide additional information about HB119 and the required changes resulting from it.
Contact Kristy Greco for assistance with the rate review or filing process, and any other questions that you might have. PHONE:352.222.0083 E-MAIL: kgreco@perrknight.com WEB:Click Here
The Total Payment Obligation to the Medicare beneficiary (TPOC) refers to the dollar amount of a settlement, judgment, award, or other payment in addition to/apart from ongoing medical responsibility. For liability insurers and self insurers, data must be captured for TPOC’s occurring after 10.1.2011 – and production level reporting will commence within the first quarter of 2012.
As such, we want to remind our clients to focus on preparing claims workflows and data capture in anticipation of these dates quickly approaching.
BE PREPARED
As you prepare, it is important to remember that:
Compliance is not simply a straightforward “data reporting” process as many vendors in the market place insist.
In fact, it is being reported that many vendors that don’t have the proper expertise are having significant challenges in adapting to medical claims based reporting.
Without a comprehensive, turn-key solution, reports to Medicare may be timely but fines could still be imposed at some point within the program due to erroneous reporting of data elements.
Ongoing education and management is required to comply with a Federal mandate that will continue to have rules changes – probably for the next few years.
Medical Set Asides (MSA’s) – which have traditionally been done only for workers compensation – will soon also be required for all liability lines and the terms of these agreements will have to be incorporated into the Section 111 quarterly reports filed.
This truly is a complex program initiative for all entities required to participate.
CHOOSE THE RIGHT SOLUTION
Perr&Knight’s proven consulting services provide excellent functional support to our growing Medicare Section 111 reporting community. This focus – along with our flexible, user friendly data portal and advanced technical capabilities – provides a value add that must be strongly considered. Our services ensure that our clients are kept aware of the latest changes in the Medicare guidelines and our data portal is maintained so that the CMS rules are continually updated and proper error analysis is conducted – which are both included in your “turn-key” solution fees for administering the reporting function.
We also recognize that many clients would like a “one stop shop” that handles both the Medicare Section 111 Reporting as well as the Medicare Set Aside (MSA) work. To this end, we have aligned ourselves with a well experienced partner should your company have a need for this service as well.
CONTROL COSTS
We understand the need for insurers to control costs in today’s economy; therefore, our set up and quarterly reporting fees are very fair for a comprehensive solution that focuses on consulting; ensures successful registration, testing and reporting; and empowers our clients with a data portal that will be updated continually to ensure Medicare reporting compliance for our client community.
The Journal of Insurance Operations launched a new version of its website with current articles from some of the industry’s leading thinkers. Click here to visit the Journal online.
