RD435 - Options and Recommendations for Improving the Actuarial Soundness of Financing for the Virginia Birth-Related Neurological Injury Compensation Program – November 1, 2017
The State Corporation Commission (SCC) was requested to develop a report containing options and recommendations for improving the actuarial soundness of financing for the Virginia Birth-Related Neurological Injury Compensation Program (Program). The report is to be presented to the Governor and Chairmen of the House Appropriations and Senate Finance Committees no later than November 1, 2017.
In producing this report, the Bureau has reviewed past works in this area and incorporated the work of the Program published in House Document No. 11 (HD 11) in 2006. The Bureau has highlighted that the Program has the financial resources to continue paying the obligations of the Program for 50+ years. Additionally, the Bureau has documented the actuarial soundness history and assessment history of the Program in thoroughly describing its current status.
The Bureau has not produced additional options beyond those reported in HD 11, due to the continued relevance of the findings of that document. Additionally, due to uncertainty regarding the circumstances and future costs regarding the Medicaid reimbursement issue detailed in the Bureau’s report, it is the finding of the Bureau that the actuarial deficit projected after the 50-year time frame is not sufficiently clear to make recommendations. The Bureau will be issuing an updated actuarial study as required by Virginia Code Section § 38.2-5021 in the fall of 2018 that will quantify more definitively the impact of the Medicaid issue on the actuarial soundness of the Program and provide the General Assembly with a more precise amount of potential shortfall to which the options contained in HD 11 may be applied.