Title

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 Department

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

Print

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

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