The ASB recently adopted its 50th ASOP, Determining Minimum Value and Actuarial Value under the Affordable Care Act. Although a practice note exists that provides information on the subject of determining minimum value and actuarial value under the Affordable Care Act (ACA), no guidance for actuaries on the subject existed other than the regulation , which prompted the ASB to request that its Health Committee explore a potential ASOP to provide guidance to actuaries performing these tasks. As a result, ASOP No. 50 was adopted as a standard that applies to actuaries performing professional services with respect to calculating actuarial values and testing minimum value requirements in accordance with the ACA and related regulations, specifically for purposes of (1) categorizing individual and small group health insurance plans into metal levels; (2) testing whether employer-sponsored health insurance plans meet the federal minimum value requirements; or (3) making any required certifications. The standard, which will be effective for any actuarial work product covered by its scope issued on or after Jan. 31, 2016, can be viewed in the "Current Standards (ASOPs)" section under the tab "Standards of Practice."
The ASB recently approved an exposure draft of a revision of ASOP No. 21, Responding to or Assisting Auditors or Examiners in Connection with Financial Audits, Financial Reviews, and Financial Examinations. As financial audits, reviews, and examinations have evolved significantly in the last ten years, the ASB decided that another revision of ASOP No. 21 was necessary. The current version of ASOP No. 21 does not address the actuary’s responsibility with respect to process and controls in the Sarbanes-Oxley environment, and was adopted before the National Association of Insurance Commissioners promulgated the Model Audit Rule. Furthermore, audits and examinations are increasingly conducted on a risk-focused basis and this contributed to the need for a revision of ASOP No. 21. The comment deadline for the exposure draft is December 31, 2015 and can be viewed under the “Drafts” tab in “Current Exposure Drafts.”
The Actuarial Standards Board (ASB) heard from more than a dozen actuarial and pension experts representing diverse views during its July 9 public hearing on public pension plan issues at the Ronald Reagan Building and International Trade Center in Washington. The ASB will reflect on the written and oral submissions as it continues its deliberations on these issues. Speakers’ comments and written comments are available here. Updates will be included in future issues of Actuarial Update, Enrolled Actuaries Report, and in ASB Boxscore.
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.
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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.