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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
$1,821,902
1.00
1.02
$1,858,340
2 .
Harm12/Man6
$1,775,868
1.00
1.02
$1,811,385
3 .
Harm6/Man12
$1,910,094
1.00
1.02
$1,948,296
4 .
Harm6/Man6
$1,863,135
1.00
1.02
$1,900,397
5 .
Harm3/Man12
$2,089,568
1.00
1.02
$2,131,360
6 .
Harm3/Man6
$2,038,748
1.00
1.02
$2,079,523
7 .
6 mos avg pd claims x
$1,783,239
1.00
1.02
$1,818,903
Harm12 "# Mos UnPd"
1.002
8 .
6 mos avg pd claims x
$1,875,962
1.00
1.02
$1,913,481
Harm 6 "# Mos UnPd"
1.054
9 .
12 mos avg pd claims x
$1,717,247
1.00
1.02
$1,751,592
Harm12 "# Mos UnPd"
1.002
10 .
12 mos avg pd claims x
$1,806,539
1.00
1.02
$1,842,670
Harm 6 "# Mos UnPd"
1.054
11 .
Average of 10 Methods
$1,905,595
Harm 12/Man 12
12 .
Prior Months Runoff Claims
Remaining
Runoff
Reserve
Total Est
Medical
Medical
Runoff
High & Low
------------------
------------------
------------------
----------------
Dec 15
$0
$1,821,902
$1,821,902
Nov 15
$1,164,124
$614,051
$1,778,175
Oct 15
$1,652,223
$318,726
$1,970,949
Sep 15
$2,077,271
$164,850
$2,242,121
High
Aug 15
$1,915,983
$107,800
$2,023,782
Jul 15
$1,802,549
$71,914
$1,874,463
Jun 15
$1,362,669
$45,922
$1,408,592
May 15
$1,410,734
$33,682
$1,444,415
Apr 15
$1,620,400
$26,232
$1,646,632
Mar 15
$2,092,115
$19,586
$2,111,700
Feb 15
$1,451,724
$12,928
$1,464,652
Jan 15
$1,626,814
$10,323
$1,637,137
Dec 14
$1,406,852
$6,523
$1,413,375
Nov 14
$1,402,166
$3,797
$1,405,964
Low
Oct 14
$1,405,183
$2,544
$1,407,727
Sep 14
$1,426,784
$1,093
$1,427,877
Aug 14
$1,435,216
$676
$1,435,892
Jul 14
$1,982,943
$367
$1,983,310
Jun 14
$1,787,574
$0
$1,787,574
13 .
Claim Reserve Relative Range:
$1,405,964 to
$2,242,121
14 .
Medical Claims IBNR Reserve Estimate:
$1,850,000
15 .
Medical Claims Processed But Not Cleared
$169,100
(3 day estimate)
Bank Account (Estimated):
16 .
Administration Expenses of Run-off Claims (Rounded):
$224,500
($41.12 PEPM * 2,730 EEs * 2 months)
17 .
Final Total Medical Reserve Estimate:
$2,243,600
ABC Company
Claim Reserve Valuation Estimates as of December 31, 2015
Medical, Pharmacy and Dental