Adding stop loss provisions to an HMO administrative services package
Date of Publication
2000
Document Type
Master's Thesis
Degree Name
Master of Science in Computational Finance
Subject Categories
Finance and Financial Management
College
Ramon V. Del Rosario College of Business
Department/Unit
Financial Management
Thesis Adviser
Romeo Carabeo
Defense Panel Chair
Rhoderick Santos
Defense Panel Member
Victor Mariano
Rex Ma. Mendoza
Abstract/Summary
This study involves finding a pricing model for a stop-loss provision for clients that utilize an Health Maintenance Organization (HMO) Administrative Services Package (ASP). Essentially, under such a package, the HMO client does self-insurance and simply uses the facilities of the HMO's for a fee. Thus, there is no transfer of risks, and the HMO client becomes open to risks of runaway claims. With the stop-loss provision, the client puts a cap on such risks and transfers these to the HMO. In terms of the modeling exercise, the stop-loss provision can be thought of as a call option being sold by the HMO to the client such that if the claims go above the cap, the option is automatically called and the HMO shoulders such claims above the cap.
Abstract Format
html
Language
English
Format
Accession Number
TG03168
Shelf Location
Archives, The Learning Commons, 12F Henry Sy Sr. Hall
Physical Description
35 leaves ; ill. ; 28 cm.
Keywords
Mathematical models; Medical care; Insurance; Health--Adjustment of claims; Insurance; Health-- Finance
Recommended Citation
Bautista, I. C. (2000). Adding stop loss provisions to an HMO administrative services package. Retrieved from https://animorepository.dlsu.edu.ph/etd_masteral/2557
