Dewonkify Actuarial Value (Of Health Benefit Plans)
The Word: Actuarial Value (of health plan benefits)
Definition: Actuarial value outlines the percentage of medical costs that a health plan will cover.
Used in a Sentence: Actuarial value can help consumers navigate different health insurance plans as they weigh coverage options and their associated costs.
What It Means: Actuarial value is meant to define how "generous" a health plan is in covering health care costs. Understanding the actuarial value of a health plan helps consumers understand what they might have to pay (deductibles and coinsurance/copays) out-of-pocket in order to cover their overall health care costs.
History: Under the Affordable Care Act, actuarial value is utilized to help individuals and the small business market understand and compare health plan options offered inside and outside of...
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