At Axene Health Partners (AHP) there are five main ways we consult in the IBNR space. All of these approaches use our proprietary IBNR software called the AHP Claims Projection System (i.e., AHP CPS ModelTM). AHP Consultants are experienced in developing IBNR estimates for their clients (i.e., health plans, self-funded employers, unions, insurance brokers, and government agencies).
The Five Approaches we use in our IBNR Consulting
“AHP CPS ModelTM” AHP Claims Projection System
Our IBNR tool, called the AHP Claims Projection System (AHP CPS ModelTM) is an Excel-based tool used to develop estimates of incurred but not reported claim liabilities. This model was developed using best-in-class methods from our senior consultants’ extensive actuarial experience. It utilizes user-friendly features and formula protections in order allow users of all skill levels to utilize the model. The Model uses Microsoft Excel and a combination of formulas in Excel and Visual Basic for Applications (VBA) programming to complete its calculations.
The AHP CPS Model builds IBNR estimates on historical claims lag experience adjusted by the user through observations and insights seen in the data. Estimates are refined by looking at many of the monitoring reports found in the model including: implied completion factors, trends, seasonality, restated liabilities, loss ratios, and statistical PAD analysis.
The AHP CPS ModelTM is more than an IBNR tool, it is a business monitoring tool. It not only looks at the current outstanding health claims, but it can be used to monitor all sorts of trends including paid claims, incurred claims, premium, utilization, and seasonality. The model also can assist with projecting claims costs into the future, setting appropriate Provision for Adverse Deviation (PAD), and monitoring medical loss ratios (MLRs).