Amount of money the Centers for Medicare and Medicaid Services (CMS) could pay a health maintenance organization (HMO) for services given to Medicare beneficiaries under a risk contract.
Insurance Encyclopedia
Average Rate
A rate for a policy established by multiplying the rate for each location by the value at that location and dividing the sum of the results of the total value.
Average rate insurances
When dealing with very large risks, fire insurers may charge a flat rate for all buildings and contents. The rate – an ‘average’ – is presumed to take account of the good and bad features of each risk. Contrary to the practice with blanket policies separate sums insured are set against each separate risk.
Average resources
Relative volume and types of diagnostic, therapeutic, and hospital/facility bed services used in managing a particular illness.
Average semi-private rate (Health Insurance)
The average amount charged for a semi-private room in a hospital located in the area where the charge is made.
Average temperature contract
A weather derivative whose payout is based on a deviation from the average temperature for a given period, e.g. summer of 2003. This single measure contract contrasts with payouts based on the cumulative deviations centred on cooling degree days and heating degree days.
Average temperature/average daily temperature
The average of the maximum temperature (Tmax) and minimum temperature (Tmin) for a given day as defined 12.00 a.m. to 12.00 p.m. The average temperature is compared with the reference temperature of a weather derivative each day.
Average Weekly Wage
A term generally used in Employees Compensation laws. It is the basis for determining weekly benefits under such laws.
Average weekly wage (Workers Compensation)
The rate used to determine the amount of the insured’s weekly benefits.
Average weekly wages (AWW)
In workers’ compensation cases, employee’s ability to earn wages including tips, gratuities, and nonmonetary earnings, expressed as a weekly earnings amount. AWW is established by using earnings from up to the 12 months (52 weeks) prior to the injury and divided by the actual number of weeks used.