Actuarial Contract Pricing Study
If you are considering an expansion, a redevelopment project, have hard to sell/rent units, are trying to reduce refund obligations, reduce life care discounts, and if you want to look into alternative contract models, a contract pricing study can help communities increase occupancy; improve the balance sheet, liquidity, and cash flow. The contract pricing actuarial analysis will develop, using insurance industry standards, the expected financial position based on the demographics and contractual guarantees including healthcare and entrance fee refundability. In developing actuarially based fee structures, it is important in this type of analysis to compare these fees to the current marketplace.
We will separately develop the expected surplus for single and couple entrants and examine any existing cross-subsidies for each combination of independent living type and entrant type. This analysis will provide management with the tools and understanding to move forward in the possible repricing of contracts, as determined by the actuarial analysis and constrained by market pressures.
Please contact Rich Navarro at rnavarro@continuingcareactuaries.com or 410-833-4220 to schedule a free consultation.
