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Claim IBNR
Estimates
Claims Processed But
Not Cleared Bank
Account
Administration
Expenses on Run-off
(Rounded)
Total
Medical
$2,491,563
$0
$146,900
$2,638,463
Dental
$48,980
$0
$0
$48,980
Total
$2,540,543
$0
$146,900
$2,687,443
Reserve Estimate Last Period (November 30, 2016)
Claim IBNR
Estimates
Claims Processed But
Not Cleared Bank
Account
Administration
Expenses on Run-off
(Rounded)
Total
Medical
$2,252,923
$0
$147,000
$2,399,923
Dental
$47,242
$0
$0
$47,242
Total
$2,300,165
$0
$147,000
$2,447,165
In making the estimation, CBIZ relied upon the following information:
Paid claim lag reports
Monthly enrollment reports
Large claim reports
Administrative and Stop Loss data
9.8%
Claim system conversion and/or other conversions: None Reported
Enrollment was relatively constant over past 12 months. Minor variance.
Speed of Payment for Medical: At 1.493 months of estimated unpaid medical claims.
3.7%
The conclusions drawn in this report are based on the assumptions outlined. There is no guarantee that ABC Company's
actual experience will match the estimates as provided.
Definition of Incurral Date: Date of service
ABC Company
Claim Reserve Valuation Estimates as of December 31, 2016
CBIZ Benefits & Insurance Services, Inc. prepared an estimate of the claims incurred but not yet paid for ABC Company's
benefit plan as of December 31, 2016. We recommend that ABC Company hold the following reserves:
This information was provided from ABC Company's claim payers, JKL Insurance Carrier, as well as from ABC
Company. Full reliance on the accuracy of this data was placed on these parties.
Other information pertinent to the claim valuation was requested from ABC Company and/or JKL Insurance
Carrier. Information of note is as follows:
Monthly Backlog and lost workdays: No information provided.
Claims in the Course of Settlement: Three large claims were considered in analysis
Individual Large Claim Adjustment: No adjustment in the lag tables were made for large claims.
Contractual Arrangements: Estimated that JKL Insurance Carrier would process run-out claims at current
administration charge for three months.
Liability for legal fees or consulting fees related to claim investigation and settlement: None Reported
Change from
Previous
Period
9.9%
Claims Processed But Not Cleared Bank Account: Accounts for the lag between when a claim is reported as
paid by the vendor versus actual physical withdrawl from ABC Company's bank account.
4