Page 8 - Michigan Economic Development Corp 2021 Renewal Information

Renewal Development-Detailed Projections

Renewal Development Facility Professional Prescription Drug Vision All Coverage
Combined
Contract Exposures 1,631 1,631 1,631 1,631 1,631
Approved Charges $1,660,401 $1,305,509 $900,443 $52,232 $3,918,585
Value: Provider Savings ($1,093,895) ($597,307) ($441,949) ($29,255) ($2,162,406)
Value: Member Liability ($5,487) ($55,227) ($21,781) ($1,205) ($83,700)
1. Payment Amount $561,019 $652,975 $436,713 $21,772 $1,672,479
Value: High Cost Claims Dollars ($4,832) ($12,721) ($123,830) $0 ($141,382)
2. Payment Amount Less High Cost Claims $556,187 $640,254 $312,884 $21,772 $1,531,097
Incurred but Not Reported Claims $24,862 $19,208 $125 $94 $44,288
Membership and Benefit Changes during the Experience Period ($28,302) ($39,892) ($32,446) ($1,157) ($101,797)
Value: Annual Trend 3.10% 3.30% 7.40% (0.60%)
Effective Trend 1.0576 1.0613 1.1398 0.9890
3. Incurred, Adjusted and Trended Projected Claims $584,573 $657,542 $319,787 $20,474 $1,582,376
Value: Estimated Provider Adjustment ($2,923) $0 ($101,372) $0 ($104,295)
4. Incurred, Adjusted and Trended Projected Claims Less Estimated Provider $581,650 $657,542 $218,414 $20,474 $1,478,080
Adjustments
Large Claims up to Attachment Point $4,272 $11,247 $109,481 $0 $125,000
Credibility $77,984 ($95,308) ($19,456) $559 ($36,221)
Renewal Period Capitation $0 $0 $0 $0 $0
Pooling Charges $110,150 $33,439 $22,175 $0 $165,764
Projected Retention Expenses $143,025 $128,040 $38,941 $6,539 $316,545
Impact of Rate Capping $0 $0
5. Projected Total Expenses for the Rating Period $917,082 $734,960 $369,555 $27,572 $2,049,168
Annual Income at Current Rates $939,880 $666,078 $319,785 $28,220 $1,953,962
6. Rate Change for the Rating Period: Expressed
as a Percentage Change from Your Current Rates (2.43%) 10.34% 15.56% (2.30%) 4.87%

-Mid-point of renewal projection: 07/2021
-Mid point of experience period: 09/2019
-Renewal Experience Period: (Incurred: 03/2019-02/2020),(Paid: 03/2019 - 03/2020)
-This renewal includes 3.0% for medical commissions
-Vision rate increase is capped at 0%
*Renewal Period High Claims Threshold = $125,000
Some variances may occur due to rounding.

MICHIGAN ECONOMIC DEVELOPMEN: January 2021-December 2021