Monte Carlo Simulations II - Economic Value of Plan Benefits and Managed Care Arrangements
Per Occurence Deductibles
Work-Product Described
Some plan designs use only calendar deductibles; some use only per occurrence deductibles (many HMO plans. e.g.); but most are mixed. The Monte Carlo II simulation is most effective when such deductibles are treated separately. Thus, the two versions of the Monte Carlo are often needed. From a practical standpoint, in a design which is predominately calendar in nature (only a few minor per occurrence deductibles), the per occurrence deductible simulation may be ignored. When both are used, the two resultant work-products are combined as demonstrated as follows:
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Cost Trifurcation |
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Calendar Year
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Per Occurence |
Combined |
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$2,000
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$2,000 |
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$500
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$4,500 |
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