MA/Part D Plan Cost Projections for OPEB Valuations Practice Note Work Group

The purpose of this Work Group is to develop a Practice Note on Medicare Advantage (MA) and Part D (PD) Plan Cost Projections for other post-employment benefit (OPEB) Valuations. More OPEB sponsors are adopting MA/PD plans, but OPEB actuaries do not necessarily price MA products and therefore do not fully understand the premium cost drivers. In addition, there are now more "zero premium" MA plans and some actuaries believe that such plans can maintain zero premiums forever while others disagree. This Practice Note will aim to provide actuaries with a better understanding of the variance in this area of actuarial practice.