2021 Health Risk-Based Capital Preparation Virtual Seminar
7.5 CPE Credits Available
Presenters: Colleen Gingrich/Bruce Cromartie
December 10, 2021
10:00am Eastern
( 9:00am Central | 8:00am Mountain | 7:00am Pacific )
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9:00am – 9:15am |
Welcome and Introductory Comments |
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9:15am – 10:30am |
Introduction and Overview of 2021 Health Risk-Based Capital Formula |
| This Chapter provides an overview of the history, concepts and principles regarding capital standards for health organizations. It also provides a general overview of the various components of the Health Risk-Based Capital (RBC) Formula including procedures for maintaining and updating the Formula.
This Chapter also summarizes the changes to the 2021 Health RBC Formula including those to the instructions and to the format. An overview of issues currently under discussion that may affect the 2022 Formula as well as other RBC issues under discussion is also addressed. |
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10:30am – 10:45am |
Break |
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10:45am – 11:30pm |
H0 – Insurance Affiliates and Miscellaneous Other |
| This Chapter addresses the risk of investments in affiliated entities and other off-balance sheet risks and provides instructions on completing the H0 Section of the Formula. The Chapter also includes a discussion of the various sources of the data used to complete the H0 Section of the Formula. A discussion of the preparation of Schedule D – Part 6 is also provided. | |
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11:30am – 12:15pm |
H1 – Asset Risk – Other Invested Assets |
| This Chapter addresses the risk of investments in fixed income, equity, and fixed assets and provides instructions on completing the H1 Section of the Formula. The Chapter also includes a discussion of the various sources of the data used to complete the H1 Section of the Formula. A case study is included in this Chapter. |
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12:15pm – 1:15pm |
Lunch |
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1:15pm – 2:30pm |
H2 – Underwriting Risk |
| This Chapter addresses underwriting risk, managed care credits, and provides instructions on completing the H2 Section of the Formula. This Chapter also includes a discussion of the various sources of the data used to complete the H2 Section of the Formula including Exhibit 7 – Summary of Transactions with Providers. A case study is included in this Chapter. |
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2:30pm – 3:00pm |
H3 – Credit Risk |
| This Chapter addresses credit risk and provides instructions on completing the H3 Section of the Formula. The Chapter also includes a discussion of the various sources of the data used to complete the H3 Section of the Formula. |
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3:00pm – 3:15pm |
Break |
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3:15pm – 3:45pm |
H4 – Business Risk |
| This Chapter addresses the H4 Section regarding credit risk The Chapter provides instructions on completing the H4 Section of the Formula. The Chapter also includes a discussion of the various sources of the data used to complete the H3 and H4 Sections of the Formula. |
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3:45pm – 4:15pm |
Covariance Calculation and Calculation of |
| This Chapter addresses the final calculation processes of the Health RBC Formula including the Covariance Calculation, Subsidiary Adjustments, Sensitivity Tests and the final Calculation of the Total RBC and Comparison of Total Adjusted Capital to RBC Capital. |
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4:15pm – 4:30pm |
Analyzing and Forecasting RBC Results |
| This Chapter summarizes the results of the Formula including a discussion of the impact of the RBC Ratio and the RBC Model Act action levels. This Chapter will also discuss the responsibility of the Reporting Entity in filing the Formula, how to analyze the impact the results of the Formula, and how to use the RBC Forecasting Tool. |
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4:30pm – 4:45pm |
Final Comments and Adjournment |