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Deadline for Comments for the ASB Public Pension Plan Hearing
Today is the deadline to submit written comments for and requests to present oral testimony at the Actuarial Standards Board’s (ASB) hearing on public pension plan issues on July 9 in Washington. The ASB intends to use information obtained through this hearing as it considers next steps in the evolution of actuarial standards of practice applicable to actuarial work regarding these plans. Learn more about the hearing, including the comment and submission guidelines, and register here.
Recently Released
In the June issue of HealthCheck, read about the Academy’s issue brief that examines various proposals put forward by policymakers in response to the possibility of a Supreme Court decision in King v. Burwell ruling that Affordable Care Act (ACA) subsidies are not available to individuals in states participating in the federally facilitated marketplace. Also in this issue, the Centers for Medicare & Medicaid Services has proposed a new rule that would modernize the Medicaid managed care regulations to promote similar standards among both private and public marketplaces, the Republican Study Committee has released a repeal-and-replace plan for the ACA, and the national media continues to rely on the Academy’s health care analysis in news and opinion pieces about the ACA.
Alerts
The Financial Reporting Committee’s Profits Followed By Losses Subgroup released a new practice note, GAAP Accounting for Profits Followed by Losses in Long-Duration Contracts. It is intended to be a resource for actuaries preparing, reviewing, or commenting on Generally Accepted Accounting Principles (GAAP) accounting for profits followed by losses in long-duration insurance contracts. Read the full alert here or in the member section under “Cross-Practice Alerts.”
Representing the U.S. Profession Internationally
Academy President-Elect Tom Wildsmith met with representatives of the China Association of Actuaries (CAA), including CAA President Dr. Chen Dongsheng and Secretary-General Wang Zheng, in Washington on June 11. Topics of discussion included the Academy’s role in setting qualification, practice, and professionalism standards for the U.S. actuarial profession. Wildsmith also described how the Academy assists public policymakers on all levels by providing leadership, objective expertise, and actuarial advice on risk and financial security issues. The Academy, as the national organization for actuaries practicing in the United States, is a sister organization to the CAA.
Public Policy Activities
Members of the Life Practice Council and Academy Senior Life Fellow Nancy Bennett gave a presentation to the Treasury Department’s Office of Financial Research (OFR) on stress-testing of U.S. life insurers. The open-ended dialogue provided OFR staff an overview of how U.S. life insurers and regulators use stress-testing, including how insurer stress-testing differs from bank stress-testing. The Health Care Cost Work Group published an issue brief addressing health care cost growth in Medicare. It provides a framework for understanding and evaluating the options for reforming Medicare and their potential effects on cost growth, quality of care, and access to care. The Catastrophe Risk Subcommittee submitted comments to the NAIC’s Catastrophe Risk Subgroup on the proposal to revise the calculation of catastrophe risks R6 and R7 for the 2015 reporting year to account for companies that calculate catastrophe risk using aggregate exceedance probability as well as those that calculate it using occurrence exceedance probability.
Announcements
Upcoming Events
Register now for the Profits Followed By Losses Webinar: The Profits Followed by Losses Subgroup will hold a webinar on July 1 to discuss its new practice note. Chairperson Robert Frasca of the subgroup and member Charles Chacosky will provide background on the Accounting Standards Codification (ASC) 944-60 Premium Deficiency and Loss Recognition guidance, which provides the accounting foundation for situations of profits followed by losses; the identification of profits followed by losses and common situations in which they are encountered; and actuarial approaches that may be considered to address situations of profits followed by losses in GAAP-basis financial statements. Learn more and register for the webinar here.
Nominate a Deserving Member
The Academy reminds you to submit nominations of members for its two highest awards, the Robert J. Myers Public Service Award and the Jarvis Farley Service Award, as well as for the Outstanding Volunteerism Award. The Myers award recognizes actuaries in public service who have made an exceptional contribution to the common good. The Farley award is given to Academy members whose volunteer efforts on behalf of the Academy have made significant contributions to the advancement of the profession. The Outstanding Volunteerism Award honors Academy volunteers who have made a single, noteworthy volunteerism contribution that is above and beyond what is reasonably expected of an Academy volunteer. The Academy will present the awards during its 50th anniversary Annual Meeting and Public Policy Forum, Nov. 12-13, in Washington.
In the News
The national news media continues to turn to the Academy for insight into the Supreme Court’s decision in King v. Burwell expected by month’s end. The analysis contained in the Academy’s issue brief, Implications of Proposed Changes to the ACA in Response to King v. Burwell, was cited in a Kaiser Health News story, “Burwell Says It’s Up To States, Congress To Help Consumers If Court Strikes Down Subsidies.” That story was subsequently widely published by major news outlets across the country, including CNN Money, Fidelity, Governing magazine, and Healthcare Finance News.
A separate Kaiser Health News story, “What’s At Stake When The Supreme Court Rules On Health Plan Subsidies,” published by Time magazine, The Atlanta Journal-Constitution, and National Public Radio, also cites the Academy’s issue brief in breaking down the implications of the case. Other media outlets that cited the issue brief in their reporting this week include Bloomberg, AM Best, The Center on Budget and Policy Priorities, California Broker, and the Times of San Diego. Other work from the Health Practice Council gaining media attention this week includes the issue brief Potential Implications of the Small Group Definition Expanding to Employers with 51-100 Employees. It was linked to a Commonwealth Fund Blog post that explores the implications of the ACA provision. A Health Affairs Blog post examining the Center for Medicare and Medicaid Services’ proposed new rule for Medicaid managed care noted that “CMS proposes to adopt the American Academy of Actuaries approach” regarding actuarially sound capitation rates. A new op-ed in Forbes magazine and The Huffington Post, “What Women, More Financially Vulnerable In Old Age, Can Do To Help Themselves,” drew heavily on testimony by Janet Barr, former chairperson of the Academy’s Social Security Committee, given before the U.S. Senate Committee on Finance Dec. 9, 2014, hearing on “Social Security: Is a Key Foundation of Economic Security Working for Women?”
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