Historical medical inflation has been approximately 7 to 12 percent per year. The current table used is the Standard 1980 Table. Lifespan has since lengthened by 5-10 percent. Impaired Mortality on Permanent Totals is used where appropriate. Significant historical reforms occurred over the1992-96 period with significant rate reductions relative to reforms.
Pricing is uncertain on many reforms.
The impact on claim department case reserves is also uncertain. Claim Department Changes Significant staff downsizing has occurred, including the loss control unit. The claim department reports no significant change in case reserving procedures. Average outstanding claim inflation running at -10 percent. Claim settlement rates appear to be flat to perhaps a modest slowdown.