Definition of Actuarial Value

Actuarial value is a computation of the % of predictable health care costs to be covered by a particular health plan for the “standard” populace.


Actuarial value is usually calculated by using the following ratio:

= The total expected payments by the plan for essential health benefit

The total expected costs of standard population

The Actuarial Value Calculator (AVC) is a tool that is used to calculate an estimated AV by taking into account the estimated network liability decided for a particular plan. the AVC runs on the 2010 data insights captured from commercial database to provide accurate information on consumption and cost-sharing against a standard population of people enrolled.
Actuarial value carries value because it is a standard of deciding how well you have planned for your medical expenditure & is determined by taking the average of cost shareable amount for all of the individuals who have participated in the plan, but it is just an estimated amount not the exact shared figure.

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