The Actuarial Standards Board (ASB) will hold a public hearing on the need for new or revised actuarial standards of practice (ASOP) applicable to actuarial work regarding public pension plans on July 9 at the Ronald Reagan Building and International Trade Center in Washington. The ASB is accepting both written comments and requests to be considered to present oral testimony at the hearing. Read more here.
The ASB recently adopted ASOP No. 49, Medicaid Managed Care Capitation Rate Development and Certification. The ASOP was developed to establish guidance for actuaries preparing, reviewing, or giving advice on capitation rates for Medicaid programs, including those certified in accordance with 42 CFR 438.6(c). Since the federal regulations took effect, actuaries have used various methods to prepare the capitation rates. ASOP No. 49 incorporates the appropriate aspects of these methods to establish guidance and considerations in the rate development process. ASOP No. 49, which will be effective for opinions and certifications issued on or after August 1, 2015, can be viewed under the tab “Current Standards (ASOPs).”
The ASB recently approved an exposure draft titled Determining Minimum Value and Actuarial Value under the Affordable Care Act. The actuarial standard of practice will apply to actuaries performing professional services with respect to calculating actuarial values and testing minimum value requirements in accordance with the Affordable Care Act and related regulations, specifically for purposes of (1) categorizing individual and small group health insurance plans into metal levels; (2) testing whether large employer-sponsored health insurance plans meet the federal minimum value requirements; or (3) making any required certifications. The comment deadline for the exposure draft is May 1, 2015 and can be viewed under the "Current Exposure Drafts" tab.
The ASB recently adopted a final revision of ASOP No. 35, Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations, during its September meeting.Significant modifications from the current version of the ASOP include making the guidelines for a reasonable assumption consistent with the guidelines contained in ASOP No. 27, Selection of Economic Assumptions for Measuring Pension Obligations, and revising the guidance in the ASOP to require disclosure of rationale for assumption selection. The standard will be effective for any actuarial work product with a measurement date on or after June 30, 2015. Earlier adoption of the standard is encouraged. The final revision of ASOP No. 35 can be viewed in the "Soon-to-be Effective ASOPs" section under the "Standards of Practice" tab.
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About The ASB
The Actuarial Standards Board (ASB) sets standards for appropriate actuarial practice in the United States through the development and promulgation of Actuarial Standards of Practice (ASOPs). These ASOPs describe the procedures an actuary should follow when performing actuarial services and identify what the actuary should disclose when communicating the results of those services.