Negative actuarial balance.

Section in a life and health insurance company that oversees the company and is operated on a mathematically sound basis. This department calculates premium and dividend rates, establishes a company’s reserve liabilities, and figures nonforfeiture, surrender, and loan values. Its research predicts mortality and morbidity rates, and this helps sets the guidelines for selecting risks and establishes the profits of the company’s products.

One-half the expected monthly cost of the supplemental medical insurance (SMI) program for each aged enrollee (for the aged actuarial rate) and one-half the expected monthly cost for each disabled enrollee (for the disabled actuarial rate) for the duration the rate is in effect.

1. Measure of the adequacy of hospital insurance and supplementary medical insurance (SMI) financing as determined by the difference between trust fund assets and liabilities for specified periods. 2. A pension fund is considered to be actuarially sound when the amount of money in the fund and the current level of contributions to the fund are sufficient to meet the liabilities that have accrued and are accruing on a current basis.

Measure of the adequacy of the financing as determined by the difference between assets and liabilities at the end of the periods for which financing was established.

Dollar value of a pension plan’s assets and liabilities as determined by the actuary. The value is based on statistical probability. It is used to establish if the assets are adequate to fund the plan’s liabilities. If not, the plan sponsor must increase its contributions to make up the deficiency. If the assets are more than necessary, the plan sponsor can reduce contributions. Also called plan valuation.

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Investigation by an actuary, usually every three years, to ascertain the ability of a defined pension scheme to meet its liabilities. This means assessing the level of funding required and recommending a contribution rate based on a comparison of the actuarial value of assets and the actuarial liability. Actuaries also carry out annual valuations of the liabilities of life insurance companies.

1. Clearness or sharpness of perception such as visual acuity. 2. Measure of a patient’s severity of illness to establish nurse staffing requirements.

Refers to a medical condition that runs a short but relatively severe course. To report for billing purposes, documentation must establish medical necessity of services rendered.

Medical services that are generally provided for a short period of time to treat a certain illness or condition. This type of care can include short-term hospital stays, doctor’s visits, surgery, and x-rays.

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Skilled, medically necessary care provided by medical and nursing personnel in order to restore a person to good health.

Facility that gives continuous professional medical care to patients during an acute condition, injury, or sudden onset of illness or disease.