Actuary - Health Insurance Definition
An actuary is an employee of an
insurance company and that person or group of
people have an important role in the health of
the company providing coverage. The actuary will
help the company understand risks and plan for
the future. It’s on the actuary’s
advice that some insurance companies take specific
steps. For example, a particular company might
offer flu shots at no charge. The goal is to have
all employees get the shot so that there are fewer
cases of the flu during flu season, fewer visits
to the doctor and fewer medications purchased.
An actuary's role in a self-insured
program is even more important. In that case,
the decision to withhold specific types of treatments
are made based on the needs of the company. For
example, a certain medication that is very expensive
may not be covered by the plan in an effort to
provide basic coverage for the masses.
As a consumer, you aren’t likely to deal
directly with an actuary, but you have that person
to thank for some of the details of your insurance
policy. By watching trends in health insurance
and health care, those specialists determine how
to offer insurance without losing money - a must
for even an insurance company to continue to operate. |
