Anyone have a rule of thumb for determining a credibility threshold on large claims? E.g., CMS dictates 24k MMs is full credibility for a Medicare bid. How might a determine a rough credibility threshold for the PMPMs above $50k? $100k? $250k? It would obviously go up as the claims threshold goes up, as we have fewer claims on greater volatility.
Y’all need some reinsurance
Is this for reserving or pricing? I would make zero adj for pricing