Milliman was engaged by The American Council of Life Insurers (ACLI) to produce a comprehensive white paper for a non-technical audience that provides an overview of supplemental health products with a focus on actuarial concepts. This white paper is intended for audiences who wish to better understand:
- The design, pricing, and administration of supplemental health products.
- How these products differ from major medical insurance.
- How to assess reported loss ratios and interpret variations across products, time periods, and carriers.
- Actuarial considerations and approaches for assessing the financial performance of supplemental health products.
Meaningful assessment of supplemental health products requires familiarity with how these products are structured, administered, and evaluated. The purpose of this paper is to provide a consistent foundation for discussions regarding supplemental health products.
This report was commissioned by The American Council of Life Insurers.