Experience rating group health insurance is usually accurate most of the time within a margin of 5%. But that’s not always the case.
For example El Paso ISD’s TRS ActiveCare Alternative Plan successfully established a record $18,000,000 health plan deficit in 16 months without even trying. (Start 1:20:30 https://elpasoisdtx.swagit.com/play/04132021-1949_)
Over 50 Texas school districts have recently learned their reinsurance carrier will not offer to renew coverage due to heavy underwriting losses totaling over $50,000,000 in only 10 months into a 12 month contract.
One of those districts is the Denton Independent School District, the lucky recipient of an underwriting offer they couldn’t refuse so they took it.
How did these underwriters miscalculate risk so badly? What the heck happened? Was it Sneaky Underwriting?
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