Mercer Oliver Wyman Actuarial Consulting, Inc. October 2006. Florida Health Insurance Plan High Risk Pool. Karen Bender Milwaukee. Florida Health Insurance Plan (FHIP). 2003 Legislation – start a new high risk program
Mercer Oliver Wyman
Actuarial Consulting, Inc.
Florida Health Insurance PlanHigh Risk Pool
Florida Comprehensive Health Association (FCHA)
Unique Circumstances in Florida that
Facilitated Impact Analysis
3 Prong Approach
High Risk Pool Would Eliminate These HIPAA Compliance Requirements
Nongroup Carrier Losses Attributable to HIPAA
If we ignore the carriers that did not provide an estimate, the weighted
average (based upon lives) is about a 3% reduction in nongroup premiums.
Reason losses decreased in 2003, companies allowed to increase rates from
115% to 150% of Standard Risk Rates
Potential Premium Savings
*The reason that Elimination of Group Conversion (0.5% of premium) has what appears to be a greater
dollar amount of impact proportionally than the elimination of one-life groups is that elimination of group
conversion impacts the premium for all fully insured group sizes, whereas the elimination of one-life
groups impacts the premium for only small groups.