Health Insurance Actuaries Need More, Accurate Data

The Centers for Medicare and Medicaid Services extended the May 1 deadline for Affordable Care Act pricing plan submissions by health plans to May 31. However, actuaries say they lack adequate data to confidently submit 2015 plans, according to a study from Munich Health North America Inc. a subsidiary of Munich Re.

Sixty-three percent of the 90 actuaries who participated in the survey said there won’t be enough data, both demographic and utilization, from the exchanges to accurately formulate pricing decisions. And, 36 percent said there will be “helpful” partial data. The other 1 percent said there will be sufficient data. Adding to the concern is the demographics of individuals moving onto the exchange.

Also see: Obamacare Late Sign-Ups May Signal Young, Health Buying Plans 

Fifty-four percent of the respondents said the impact of ACA has been worse for the age distribution of those enrolling through the state exchanges. More than 84 percent said the age mix is a cause for concern; 62 percent specifically mentioned that anti-selection was occurring.

Also creating a riskier health insurance market is the move in Washington to associate the "risk corridors" in the exchanges  with "bailing out the big insurance companies". If this move gains traction, 53 percent of the respondents believe it might cause insurers to withdraw from the exchanges. The other 47 percent either believe it wouldn’t or weren’t sure.