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I. MEDICAL CLAIM IBNP RESERVE CALCULATION:
Medical
Reserve Valuation
Reserve
Reinsurance
Seasonality
Method Description
Estimate
Recoverable
& Margin
TOTAL
-------------------------
---------------
------------------
---------------
-------------
1 .
Harm12/Man12
$2,491,563
1.00
1.00
$2,491,563
2 .
Harm12/Man6
$2,473,746
1.00
1.00
$2,473,746
3 .
Harm6/Man12
$2,697,094
1.00
1.00
$2,697,094
4 .
Harm6/Man6
$2,694,843
1.00
1.00
$2,694,843
5 .
Harm3/Man12
$2,895,217
1.00
1.00
$2,895,217
6 .
Harm3/Man6
$2,908,203
1.00
1.00
$2,908,203
7 .
6 mos avg pd claims x
$2,723,255
1.00
1.00
$2,723,255
Harm12 "# Mos UnPd"
1.493
8 .
6 mos avg pd claims x
$2,972,783
1.00
1.00
$2,972,783
Harm 6 "# Mos UnPd"
1.629
9 .
12 mos avg pd claims x
$2,600,937
1.00
1.00
$2,600,937
Harm12 "# Mos UnPd"
1.493
10 .
12 mos avg pd claims x
$2,839,257
1.00
1.00
$2,839,257
Harm 6 "# Mos UnPd"
1.629
11 .
Average of 10 Methods
$2,729,690
Harm 12/Man 12
12 .
Prior Months Runoff Claims
Remaining
Runoff
Reserve
Total Est
Medical
Medical
Runoff
High & Low
------------------
------------------
------------------
----------------
Dec 16
$0
$2,491,563
$2,491,563
Nov 16
$1,896,059
$1,225,945
$3,122,004
Oct 16
$2,031,864
$604,917
$2,636,781
Sep 16
$2,128,980
$346,316
$2,475,296
Aug 16
$2,709,070
$186,186
$2,895,256
Jul 16
$2,678,251
$100,702
$2,778,953
Jun 16
$2,755,240
$39,933
$2,795,172
May 16
$2,696,547
$12,808
$2,709,355
Apr 16
$2,590,519
$644
$2,591,164
Mar 16
$3,221,939
-$5,514
$3,216,425
High
Feb 16
$2,152,579
-$7,835
$2,144,743
Low
13 .
Claim Reserve Relative Range:
$2,144,743 to
$3,216,425
14 .
Medical Claims IBNR Reserve Estimate:
$2,491,563
15 .
Medical Claims Processed But Not Cleared
$0
0
Day Estimate
Bank Account
16 .
Administration Expenses of Run-off Claims (Rounded):
$146,900 ($31.89 PEPM * 1535 EEs * 3 months)
17 .
Final Total Medical Reserve Estimate:
$2,638,463
ABC Company
Claim Reserve Valuation Estimates as of December 31, 2016
Medical, Pharmacy and Dental