2020 Health Risk-Based Capital Preparation

Virtual Training Seminar
7 CPE Credits Available
Presenters: Colleen Gingrich/Bruce Cromartie
December 11, 2020
10:30am Eastern
( 9:30am Central   |   8:30am Mountain   |   7:30am Pacific )
Agenda

10:30am – 10:45am

Welcome and Introductory Comments

10:45am – 11:45am

Introduction and Overview of 2020 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 2020 Health RBC Formula including those to the instructions and to the format. An overview of issues currently under discussion that may affect the 2021 Formula as well as other RBC issues under discussion is also addressed.

11:45am – 12:45pm

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.

12:45pm – 1:45pm

Lunch

1:45pm – 2:30pm

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.

2:30pm – 3:45pm

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.

3:45pm – 4:00pm

Break

4:00pm – 4:45pm

H3 – Credit Risk and H4 – Business Risk

This Chapter addresses the H3 and H4 Sections regarding credit and business risk, respectively The Chapter provides instructions on completing the H3 and H4 Sections 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.

4:45pm – 5:15pm

Covariance Calculation and Calculation of Risk-Based Capital

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.

5:15pm – 5:45pm

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.

5:45pm – 6:00pm

Final Questions and Answers