Document ID: chunk:federal_register_of_legislation:F2023L00723:front:0:p8
Version: federal_register_of_legislation:F2023L00723
Segment Type: other
Provision Reference: 
Character Range: 23371–26674

DCL aggregation benefit.
Discount on Future Exposure Risk Charge (FERC) (MA) amount  This is the value of discounting the future cashflows associated with the future exposure risk charge. This is value of cashflows post management actions after the exclusion of any insurance profits forecast after management actions, in accordance with HPS 115.
Discount on Outstanding Claims Liability (OCL) amount       This is the value of discounting on the HPS 340 outstanding claims liability. This includes the impact of discounting on the net actuarial central estimate of outstanding claims.
Discount on Premium Liability (PL) amount                   This is the value of discounting on the HPS 340 premium liability.

E
Expected reinsurance recoveries - PL amount  This is the value of expected reinsurance recoveries receivable by the health benefits fund or general fund associated with the PL, gross of any provisions for depreciation or impairment. It is determined in accordance with HPS 340. This item is to be reported gross of any discounting, as all discounting is to be reported in discount on PL amount.

F
Future Exposure Risk Charge         This is a derived item and is calculated as the sum of:
                                         * Future Exposure Risk Charge - HIB; and
                                         * Future Exposure Risk Charge - HRIB.
Future Exposure Risk Charge - HIB   This is a derived item and is calculated as:

                                         *

                                    where:
                                    A equals HIB net margin (MA) amount total
                                    B equals Insurance profits forecast after management actions amount for HIB
                                    C equals Discount on Future Exposure Risk Charge amount for HIB
Future Exposure Risk Charge - HRIB  This is a derived item and is calculated as:

                                         *

                                    where:
                                    A equals HRIB net margin (MA) amount total
                                    B equals Insurance profits forecast after management actions amount for HRIB
                                    C equals Discount on Future Exposure Risk Charge amount for HRIB
Future Exposure Risk Charge period  This is the month of the forecast period, and ranges from the month following the reporting date to the month concluding on the 12th month following the reporting date.

G
General fund                        This refers to the portion of the insurer referred to as the general fund as defined in HPS 001.
(Private health insurer fund type)
General treatment                   General treatment has the same meaning as in the Private Health Insurance Act 2007 (PHI Act).
(Class of Business)
Gross deficit                       Gross deficit means the sum of the eligible benefits notionally allocated to the aged-based pool and the high cost claimants pool, calculated for each risk equalisation jurisdiction, in accordance with Part 2, Rule 11(1)(a) of the Private Health Insurance (Risk Equalisation Policy) Rules 2015.
Gross deficit (AES) amount          This is the forecast of the gross deficit after the Adverse Event Stress, as defined in HPS 115, for that month.