Insurance provision to allow for an error when estimating premium rates and reserve requirements.

Specific geographical region where an insurance plan’s chief market potential is located. It may not be the same as its service area, but many times it can overlap.

Table used by the Centers for Medicare and Medicaid Services (CMS) to compute and update the indexes for most facilities. It takes into consideration three elements: a set of input categories (labor, supplies, purchased services); a set of price proxies that represent price levels for the input categories; and a fixed set of weights (proportions) that represent the importance of each input category in providers’ input expenditures for the base year. The formula is to take the actual or projected values of the price proxies for a year, multiply them by the category weights, and total them to get the overall market basket index value for the year. For physicians’ office practices, see Medicare Economic Index (MEI) .

Situation that affects primary decision-making by providers or health plans that is related to competitive levels of insurance benefits or types of medical services.

Amount paid or value considered in the open market at which a security or stock can be bought or sold.
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The price actually paid or the price considered to be obtainable in the open market under the conditions currently existing.

Phrase that refers to the section, part, or portion of a specific class or type of potentially enrolled consumer for selling an insurance contract (e.g., groups under 100 employees or self-funded groups).

Section or portion of a potential market, usually expressed as a percentage, that a managed care plan has captured.

MEDICAL,USA: Current assets worth that is based on the daily stock market such as stocks, bonds, and real estate.
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The price at which insured property could have been sold just prior to its loss or damage. Along with cost new minus use deprecation, market value is but another gauge used to determine the loss settlement to which an insured is entitled. The insured may choose the gauge that produces the most favorable outcome.
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The price for which a product would sell on the current market.
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The quantity of other commodities a property would command in exchange, specifically the highest price estimated in terms of money which buyer would be warranted in paying and a seller justified in accepting provided both parties were fully informed, acted intelligently and voluntarily, and further that all the rights and benefits inherent in or attributable to the property were included in the transfer.

Provision in an insurance policy that provides that the insurance company, in the event of loss, will pay the selling price of the completed merchandise instead of cost replacement or its actual value.
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A provision that may be used in certain property insurances which obligates an insurer to pay the established market price of destroyed or damaged stock rather than its cost to the insured. This coverage is usually only available to manufacturers with finished products, not to wholesales or retailers.