CMS-10379.KY examples (7-12-11)

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Overview

Summary
Level
Increase
Decrease

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Sheet 1: Summary

HHS 10% Threshold								This spreadsheet consists of several examples created by the Kentucky Department of Insurance
KYDOI Examples								in order to explore the threshold test and its attributes.
								CMS has examined each example and tried to add insightful cases to the right of column H with
Individual Rate Filing								simple calculations. These calculations are illustrative to impart understanding and can be performed
Proposed Effective Date 1/1/12								far more efficiently.
Base Rate increase of 9%. Varying trend increases for future rates, and varying membership.
Summary
		Assumption
	Example	Trend	Membership		Average Increase
	1	11%	Level		CMS: This value is correct. 9.9%
	3	11%	Increasing		10.1%
	5	11%	Decreasing		9.7%
	2	12%	Level		CMS: This value is correct. 10.4%
	4	12%	Increasing		10.7%
	6	12%	Decreasing		10.1%

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Sheet 2: Level

HHS 10% Threshold
KYDOI Example 1
Individual Rate Filing																																			Case 1(c)
Proposed Effective Date 1/1/12
Base rate increase of 9%																																			2012			2011 thru 2013 premiums in table below. 100 enrolles in each monthly renewal cohort for 1,200 enrolles total. Cum monthly
Rates trended in 2012 by 11%/year																																			base	9.00%		increases are implemented upon renewal date only. The 2012 filing with 9% base rate increase and 11% trend is filed with
No change in any rating factors except trend																																			trend	11.00%		State department and approved. 2012 filing des not exceed threshold (as per Case 1 (b)). 2013 filing seeks 0% base increase and
																																			2013			6.1% trend. This increase would trigger the theshold since the average increase for an increase within the one year window from the
															Case 1(b)	Premiums in table below. 100 enrolles in each monthly renewal cohort for 1,200 enrolles total. Cum monthly increases																			base	0.00%		effective date exceeds the threshold. Thus, the 2013 proposal would become subject to review. The 2012 filing is not subject to
Experience			2011 Trend = 9%				Case 1(a) Premium schedule changes monthly, all enrollees pay same rate.									implemented upon renewal date only.																			trend	6.10%		review.													2013 filing analysis							2012 filing analysis assuming no future increases
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium			Renewal Date	Total Premium							Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Total Monthly Premium	2011 Total Premim	2012 Total Premim	2011 Average Annual Premium	2012 Average Annual Premium	Average Increase with no future premium impact		Renewal Date	Prem Schedule		Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Total Monthly Premium	Total Old Annual Premim	Total new Annual Premim	Old Average Annual Premium	New Average Annual Premium	Avg increase		Total Monthly Premium	Total Old Annual Premim	Total new Annual Premim	Old Average Annual Premium	New Average Annual Premium	Avg increase
1/1/2011	100	$100.00	$100.00	$10,000			1/1/2011	100.00							100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,000.00							1/1/2011	100.00		100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,000.00							120,000.00
2/1/2011	100	$100.00	$100.72	$10,072			2/1/2011	100.72							100.00	100.72	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,072.07							2/1/2011	100.72		100.00	100.72	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,072.07							120,072.07
3/1/2011	100	$100.00	$101.45	$10,145			3/1/2011	101.45							100.00	100.72	101.45	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,216.74							3/1/2011	101.45		100.00	100.72	101.45	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,216.74							120,216.74
4/1/2011	100	$100.00	$102.18	$10,218			4/1/2011	102.18							100.00	100.72	101.45	102.18	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,434.52							4/1/2011	102.18		100.00	100.72	101.45	102.18	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,434.52							120,434.52
5/1/2011	100	$100.00	$102.91	$10,291			5/1/2011	102.91							100.00	100.72	101.45	102.18	102.91	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,725.95							5/1/2011	102.91		100.00	100.72	101.45	102.18	102.91	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,725.95							120,725.95
6/1/2011	100	$100.00	$103.66	$10,366			6/1/2011	103.66							100.00	100.72	101.45	102.18	102.91	103.66	100.00	100.00	100.00	100.00	100.00	100.00		121,091.54							6/1/2011	103.66		100.00	100.72	101.45	102.18	102.91	103.66	100.00	100.00	100.00	100.00	100.00	100.00		121,091.54							121,091.54
7/1/2011	100	$100.00	$104.40	$10,440			7/1/2011	104.40							100.00	100.72	101.45	102.18	102.91	103.66	104.40	100.00	100.00	100.00	100.00	100.00		121,531.85	Using Jan 2012 as the point of						7/1/2011	104.40		100.00	100.72	101.45	102.18	102.91	103.66	104.40	100.00	100.00	100.00	100.00	100.00		121,531.85							121,531.85
8/1/2011	100	$100.00	$105.16	$10,516			8/1/2011	105.16							100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	100.00	100.00	100.00	100.00		122,047.40	reference the average increase is:						8/1/2011	105.16		100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	100.00	100.00	100.00	100.00		122,047.40							122,047.40
9/1/2011	100	$100.00	$105.91	$10,591			9/1/2011	105.91							100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	100.00	100.00	100.00		122,638.75							9/1/2011	105.91		100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	100.00	100.00	100.00		122,638.75							122,638.75
10/1/2011	100	$100.00	$106.68	$10,668			10/1/2011	106.68							100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	100.00	100.00		123,306.42		avg increase		avg increase			10/1/2011	106.68		100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	100.00	100.00		123,306.42							123,306.42
11/1/2011	100	$100.00	$107.45	$10,745			11/1/2011	107.45				Average Increase			100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	100.00		124,050.99		7.84%		7.84%			11/1/2011	107.45		100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	100.00		124,050.99							124,050.99
12/1/2011	100	$100.00	$108.22	$10,822			12/1/2011	108.22	1,248.73	old annual premium		9.93%			100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		124,872.99							12/1/2011	108.22		100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		124,872.99							124,872.99
							1/1/2012	109.00	1,372.70	new annual premium					109.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		125,772.99	1,460,989.22	1,575,519.91	1,217.49	1,312.93	7.84%		1/1/2012	109.00		109.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		125,772.99	1,460,989.22	1,575,519.91	1,217.49	1,312.93	7.84%		125,772.99	1,460,989.22	1,575,519.91	1,217.49	1,312.93	7.84%
Proposed Base Rate Increase		9%					2/1/2012	109.95							109.00	109.95	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		126,696.12					8.28%		2/1/2012	109.95		109.00	109.95	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		126,696.12	1,466,762.21	1,588,216.19	1,222.30	1,323.51	8.28%		126,696.12	1,466,762.21	1,588,216.19	1,222.30	1,323.51	8.28%
2012 Annual Trend =		11%					3/1/2012	110.91							109.00	109.95	110.91	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		127,642.70					8.67%		3/1/2012	110.91		109.00	109.95	110.91	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		127,642.70	1,473,386.26	1,601,152.97	1,227.82	1,334.29	8.67%		127,642.70	1,473,386.26	1,601,093.12	1,227.82	1,334.24	8.67%
							4/1/2012	111.88							109.00	109.95	110.91	111.88	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		128,613.04					9.00%		4/1/2012	111.88		109.00	109.95	110.91	111.88	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		128,613.04	1,480,812.22	1,614,270.92	1,234.01	1,345.23	9.01%		128,613.04	1,480,812.22	1,614,031.23	1,234.01	1,345.03	9.00%
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium	Increase		5/1/2012	112.86							109.00	109.95	110.91	111.88	112.86	103.66	104.40	105.16	105.91	106.68	107.45	108.22		129,607.47					9.26%		5/1/2012	112.86		109.00	109.95	110.91	111.88	112.86	103.66	104.40	105.16	105.91	106.68	107.45	108.22		129,607.47	1,488,990.74	1,627,509.84	1,240.83	1,356.26	9.30%		129,607.47	1,488,990.74	1,626,909.87	1,240.83	1,355.76	9.26%
1/1/2012	100	$109.00	$109.00	$10,900	9.0%		6/1/2012	113.84							109.00	109.95	110.91	111.88	112.86	113.84	104.40	105.16	105.91	106.68	107.45	108.22		130,626.29					9.46%		6/1/2012	113.84		109.00	109.95	110.91	111.88	112.86	113.84	104.40	105.16	105.91	106.68	107.45	108.22		130,626.29	1,497,872.26	1,640,808.66	1,248.23	1,367.34	9.54%		130,626.29	1,497,872.26	1,639,607.25	1,248.23	1,366.34	9.46%
2/1/2012	100	$109.00	$109.95	$10,995	9.2%		7/1/2012	114.84							109.00	109.95	110.91	111.88	112.86	113.84	114.84	105.16	105.91	106.68	107.45	108.22		131,669.85					9.59%		7/1/2012	114.84		109.00	109.95	110.91	111.88	112.86	113.84	114.84	105.16	105.91	106.68	107.45	108.22		131,669.85	1,507,407.01	1,654,105.44	1,256.17	1,378.42	9.73%		131,669.85	1,507,407.01	1,652,000.38	1,256.17	1,376.67	9.59%
3/1/2012	100	$109.00	$110.91	$11,091	9.3%		8/1/2012	115.84							109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	105.91	106.68	107.45	108.22		132,738.46					9.65%		8/1/2012	115.84		109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	105.91	106.68	107.45	108.22		132,738.46	1,517,545.01	1,667,337.37	1,264.62	1,389.45	9.87%		132,738.46	1,517,545.01	1,663,965.08	1,264.62	1,386.64	9.65%
4/1/2012	100	$109.00	$111.88	$11,188	9.5%		9/1/2012	116.85							109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	106.68	107.45	108.22		133,832.47					9.63%		9/1/2012	116.85		109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	106.68	107.45	108.22		133,832.47	1,528,236.07	1,680,440.71	1,273.53	1,400.37	9.96%		133,832.47	1,528,236.07	1,675,376.00	1,273.53	1,396.15	9.63%
5/1/2012	100	$109.00	$112.86	$11,286	9.7%		10/1/2012	117.87							109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	107.45	108.22		134,952.22					9.53%		10/1/2012	117.87		109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	107.45	108.22		134,952.22	1,539,429.80	1,693,350.85	1,282.86	1,411.13	10.00%		134,952.22	1,539,429.80	1,686,106.56	1,282.86	1,405.09	9.53%
6/1/2012	100	$109.00	$113.84	$11,384	9.8%		11/1/2012	118.90							109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	108.22		136,098.03					9.35%		11/1/2012	118.90		109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	108.22		136,098.03	1,551,075.59	1,706,002.23	1,292.56	1,421.67	9.99%		136,098.03	1,551,075.59	1,696,028.96	1,292.56	1,413.36	9.35%
7/1/2012	100	$109.00	$114.84	$11,484	10.0%		12/1/2012	119.94							109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		137,270.26					9.08%		12/1/2012	119.94		109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		137,270.26	1,563,122.64	1,718,328.40	1,302.60	1,431.94	9.93%		137,270.26	1,563,122.64	1,705,014.16	1,302.60	1,420.85	9.08%
8/1/2012	100	$109.00	$115.84	$11,584	10.2%																														1/1/2013	120.99		120.99	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		138,469.26	1,575,519.91	1,730,261.96	1,312.93	1,441.88	9.82%		138,469.26	1,575,519.91	1,712,931.90	1,312.93	1,427.44	8.72%
9/1/2012	100	$109.00	$116.85	$11,685	10.3%					1/1/12 Rate increase by cohort affected					9.00%	8.47%	8.03%	7.70%	7.46%	7.31%	7.26%	7.30%	7.44%	7.68%	8.01%	8.45%	avg inc	7.84%							2/1/2013	121.59		120.99	121.59	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		139,632.90							139,573.06
10/1/2012	100	$109.00	$117.87	$11,787	10.5%																														3/1/2013	122.19		120.99	121.59	122.19	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		140,760.65							140,580.81
11/1/2012	100	$109.00	$118.90	$11,890	10.7%					Note that since a new increase effective date occurs each month one has to test at each month for the average annual increase, if any of the 12 exceed the threshold increase is subject to review.																									4/1/2013	122.79		120.99	121.59	122.19	122.79	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		141,851.96							141,491.69
12/1/2012	100	$109.00	$119.94	$11,994	10.8%																														5/1/2013	123.40		120.99	121.59	122.19	122.79	123.40	113.84	114.84	115.84	116.85	117.87	118.90	119.94		142,906.29							142,304.84
Total	1,200			$137,270																															6/1/2013	124.01		120.99	121.59	122.19	122.79	123.40	124.01	114.84	115.84	116.85	117.87	118.90	119.94		143,923.08							143,019.42
Weighted average increase					9.9%																														7/1/2013	124.63		120.99	121.59	122.19	122.79	123.40	124.01	124.63	115.84	116.85	117.87	118.90	119.94		144,901.77							143,634.55
																																			8/1/2013	125.24		120.99	121.59	122.19	122.79	123.40	124.01	124.63	125.24	116.85	117.87	118.90	119.94		145,841.81							144,149.38
																																			9/1/2013	125.86		120.99	121.59	122.19	122.79	123.40	124.01	124.63	125.24	125.86	117.87	118.90	119.94		146,742.61							144,563.03
																																			10/1/2013	126.48		120.99	121.59	122.19	122.79	123.40	124.01	124.63	125.24	125.86	126.48	118.90	119.94		147,603.60							144,874.61
																																			11/1/2013	127.11		120.99	121.59	122.19	122.79	123.40	124.01	124.63	125.24	125.86	126.48	127.11	119.94		148,424.20							145,083.24
																																			12/1/2013	127.74		120.99	121.59	122.19	122.79	123.40	124.01	124.63	125.24	125.86	126.48	127.11	127.74		149,203.82							145,188.00
																																			Increase reference point
																																			10/1/2012	avg inc for cohort		10.53%	10.14%	9.84%	9.63%	9.52%	9.51%	9.60%	9.79%	10.09%	10.50%	10.41%	10.42%	avg inc	10.00%
HHS 10% Threshold
KYDOI Example 2
Individual Rate Filing																																			Case 2(b)
Proposed Effective Date 1/1/12
Base rate increase of 9%																																			2012			2011 thru 2013 premiums in table below. 100 enrolles in each monthly renewal cohort for 1,200 enrolles total. Cum monthly
Rates trended in 2012 by 12%/year																																			base	9.00%		increases are implemented upon renewal date only. The 2012 filing with 9% base rate increase and 12% trend is filed with
No change in any rating factors except trend																																			trend	12.00%		State department and approved. 2012 filing exceeds threshold test.
																																			2013
															Case 2(b)	Premiums in table below. 100 enrolles in each monthly renewal cohort for 1,200 enrolles total. Cum monthly increases																			base	0.00%
Experience			2011 Trend = 9%				Case 2(a) Premium schedule changes monthly, all enrollees pay same rate.									implemented upon renewal date only.																			trend	0.00%
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium			Renewal Date	Total Premium							Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Total Monthly Premium	2011 Total Premim	2012 Total Premim	2011 Average Annual Premium	2012 Average Annual Premium			Renewal Date	Prem Schedule		Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Total Monthly Premium	Total Old Annual Premim	Total new Annual Premim	Old Average Annual Premium	New Average Annual Premium	Avg increase
1/1/2011	100	$100.00	$100.00	$10,000			1/1/2011	100.00							100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,000.00							1/1/2011	100.00		100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,000.00
2/1/2011	100	$100.00	$100.72	$10,072			2/1/2011	100.72							100.00	100.72	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,072.07							2/1/2011	100.72		100.00	100.72	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,072.07
3/1/2011	100	$100.00	$101.45	$10,145			3/1/2011	101.45							100.00	100.72	101.45	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,216.74							3/1/2011	101.45		100.00	100.72	101.45	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,216.74
4/1/2011	100	$100.00	$102.18	$10,218			4/1/2011	102.18							100.00	100.72	101.45	102.18	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,434.52							4/1/2011	102.18		100.00	100.72	101.45	102.18	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,434.52
5/1/2011	100	$100.00	$102.91	$10,291			5/1/2011	102.91							100.00	100.72	101.45	102.18	102.91	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,725.95							5/1/2011	102.91		100.00	100.72	101.45	102.18	102.91	100.00	100.00	100.00	100.00	100.00	100.00	100.00		120,725.95
6/1/2011	100	$100.00	$103.66	$10,366			6/1/2011	103.66							100.00	100.72	101.45	102.18	102.91	103.66	100.00	100.00	100.00	100.00	100.00	100.00		121,091.54							6/1/2011	103.66		100.00	100.72	101.45	102.18	102.91	103.66	100.00	100.00	100.00	100.00	100.00	100.00		121,091.54
7/1/2011	100	$100.00	$104.40	$10,440			7/1/2011	104.40							100.00	100.72	101.45	102.18	102.91	103.66	104.40	100.00	100.00	100.00	100.00	100.00		121,531.85	Using Jan 2012 as the point of						7/1/2011	104.40		100.00	100.72	101.45	102.18	102.91	103.66	104.40	100.00	100.00	100.00	100.00	100.00		121,531.85
8/1/2011	100	$100.00	$105.16	$10,516			8/1/2011	105.16							100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	100.00	100.00	100.00	100.00		122,047.40	reference the average increase is:						8/1/2011	105.16		100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	100.00	100.00	100.00	100.00		122,047.40
9/1/2011	100	$100.00	$105.91	$10,591			9/1/2011	105.91							100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	100.00	100.00	100.00		122,638.75							9/1/2011	105.91		100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	100.00	100.00	100.00		122,638.75
10/1/2011	100	$100.00	$106.68	$10,668			10/1/2011	106.68							100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	100.00	100.00		123,306.42		avg increase		avg increase			10/1/2011	106.68		100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	100.00	100.00		123,306.42
11/1/2011	100	$100.00	$107.45	$10,745			11/1/2011	107.45				Average increase			100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	100.00		124,050.99		8.01%		8.01%			11/1/2011	107.45		100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	100.00		124,050.99
12/1/2011	100	$100.00	$108.22	$10,822			12/1/2011	108.22	1,248.73	old annual premium		10.39%			100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		124,872.99							12/1/2011	108.22		100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		124,872.99
							1/1/2012	109.00	1,378.47	new annual premium					109.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		125,772.99	1,460,989.22	1,577,980.85	1,217.49	1,314.98			1/1/2012	109.00		109.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		125,772.99	1,460,989.22	1,577,980.85	1,217.49	1,314.98	8.01%
Proposed Base Rate Increase		9%					2/1/2012	110.03							109.00	110.03	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		126,704.34							2/1/2012	110.03		109.00	110.03	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		126,704.34	1,466,762.21	1,591,362.68	1,222.30	1,326.14	8.49%
2012 Annual Trend =		12%					3/1/2012	111.08							109.00	110.03	111.08	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		127,667.51							3/1/2012	111.08		109.00	110.03	111.08	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		127,667.51	1,473,394.48	1,605,017.74	1,227.83	1,337.51	8.93%
							4/1/2012	112.13							109.00	110.03	111.08	112.13	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		128,662.97							4/1/2012	112.13		109.00	110.03	111.08	112.13	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		128,662.97	1,480,845.25	1,618,809.79	1,234.04	1,349.01	9.32%
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium	Increase		5/1/2012	113.20							109.00	110.03	111.08	112.13	113.20	103.66	104.40	105.16	105.91	106.68	107.45	108.22		129,691.18							5/1/2012	113.20		109.00	110.03	111.08	112.13	113.20	103.66	104.40	105.16	105.91	106.68	107.45	108.22		129,691.18	1,489,073.70	1,632,601.14	1,240.89	1,360.50	9.64%
1/1/2012	100	$109.00	$109.00	$10,900	9.00%		6/1/2012	114.27							109.00	110.03	111.08	112.13	113.20	114.27	104.40	105.16	105.91	106.68	107.45	108.22		130,752.63							6/1/2012	114.27		109.00	110.03	111.08	112.13	113.20	114.27	104.40	105.16	105.91	106.68	107.45	108.22		130,752.63	1,498,038.94	1,646,252.65	1,248.37	1,371.88	9.89%
2/1/2012	100	$109.00	$110.03	$11,003	9.25%		7/1/2012	115.35							109.00	110.03	111.08	112.13	113.20	114.27	115.35	105.16	105.91	106.68	107.45	108.22		131,847.80							7/1/2012	115.35		109.00	110.03	111.08	112.13	113.20	114.27	115.35	105.16	105.91	106.68	107.45	108.22		131,847.80	1,507,700.02	1,659,623.66	1,256.42	1,383.02	10.08%
3/1/2012	100	$109.00	$111.08	$11,108	9.49%		8/1/2012	116.45							109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	105.91	106.68	107.45	108.22		132,977.18							8/1/2012	116.45		109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	105.91	106.68	107.45	108.22		132,977.18	1,518,015.97	1,672,572.03	1,265.01	1,393.81	10.18%
4/1/2012	100	$109.00	$112.13	$11,213	9.74%		9/1/2012	117.55							109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	106.68	107.45	108.22		134,141.27							9/1/2012	117.55		109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	106.68	107.45	108.22		134,141.27	1,528,945.75	1,684,954.08	1,274.12	1,404.13	10.20%
5/1/2012	100	$109.00	$113.20	$11,320	9.99%		10/1/2012	118.67							109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	107.45	108.22		135,340.56							10/1/2012	118.67		109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	107.45	108.22		135,340.56	1,540,448.27	1,696,624.61	1,283.71	1,413.85	10.14%
6/1/2012	100	$109.00	$114.27	$11,427	10.24%		11/1/2012	119.80							109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	108.22		136,575.58							11/1/2012	119.80		109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	108.22		136,575.58	1,552,482.41	1,707,436.88	1,293.74	1,422.86	9.98%
7/1/2012	100	$109.00	$115.35	$11,535	10.49%		12/1/2012	120.93							109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		137,846.83							12/1/2012	120.93		109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		137,846.83	1,565,007.01	1,717,242.55	1,304.17	1,431.04	9.73%
8/1/2012	100	$109.00	$116.45	$11,645	10.74%																														1/1/2013	122.08		122.08	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		139,154.83
9/1/2012	100	$109.00	$117.55	$11,755	10.99%					1/1/12 Rate increase by cohort affected					9.00%	8.54%	8.17%	7.88%	7.68%	7.55%	7.51%	7.55%	7.67%	7.87%	8.16%	8.54%	avg inc	8.01%							2/1/2013	122.08		122.08	122.08	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		140,359.40
10/1/2012	100	$109.00	$118.67	$11,867	11.24%																														3/1/2013	122.08		122.08	122.08	122.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		141,459.56
11/1/2012	100	$109.00	$119.80	$11,980	11.49%					Note that since a new increase effective date occurs each month one has to test at each month for the average annual increase, if any of the 12 exceed the threshold increase is subject to review.																									4/1/2013	122.08		122.08	122.08	122.08	122.08	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		142,454.33
12/1/2012	100	$109.00	$120.93	$12,093	11.75%																														5/1/2013	122.08		122.08	122.08	122.08	122.08	122.08	114.27	115.35	116.45	117.55	118.67	119.80	120.93		143,342.69
Total	1,200			$137,847																															6/1/2013	122.08		122.08	122.08	122.08	122.08	122.08	122.08	115.35	116.45	117.55	118.67	119.80	120.93		144,123.64
Weighted average increase					10.4%																														7/1/2013	122.08		122.08	122.08	122.08	122.08	122.08	122.08	122.08	116.45	117.55	118.67	119.80	120.93		144,796.17
																																			8/1/2013	122.08		122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	117.55	118.67	119.80	120.93		145,359.23
																																			9/1/2013	122.08		122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	118.67	119.80	120.93		145,811.80
																																			10/1/2013	122.08		122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	119.80	120.93		146,152.83
																																			11/1/2013	122.08		122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	120.93		146,381.25
																																			12/1/2013	122.08		122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08		146,496.00
																																			Increase reference point
																																			1/1/2012			CMS: The Green cells correspond to the vector found in F90:F101 9.00%	8.54%	8.17%	7.88%	7.68%	7.55%	7.51%	7.55%	7.67%	7.87%	8.16%	8.54%	avg inc	8.01%
																																			2/1/2012			9.27%	9.25%	8.83%	8.50%	8.26%	8.10%	8.02%	8.02%	8.10%	8.26%	8.51%	8.85%	avg inc	8.50%
																																			3/1/2012			9.54%	9.40%	9.49%	9.12%	8.84%	8.64%	8.52%	8.48%	8.53%	8.65%	8.86%	9.16%	avg inc	8.94%
																																			4/1/2012			9.80%	9.55%	9.53%	9.74%	9.42%	9.18%	9.02%	8.94%	8.95%	9.03%	9.20%	9.46%	avg inc	9.32%
																																			5/1/2012			10.06%	9.70%	9.57%	9.66%	9.99%	9.71%	9.51%	9.40%	9.36%	9.41%	9.54%	9.76%	avg inc	9.64%
																																			6/1/2012			10.31%	9.85%	9.60%	9.59%	9.80%	10.24%	10.00%	9.85%	9.78%	9.79%	9.88%	10.05%	avg inc	9.89%
																																			7/1/2012	avg inc for cohort		10.56%	9.99%	9.64%	9.51%	9.60%	9.93%	10.49%	10.30%	10.18%	10.16%	10.21%	10.34%	avg inc	10.08%
																																			8/1/2012			10.81%	10.13%	9.67%	9.43%	9.42%	9.62%	10.06%	10.74%	10.59%	10.52%	10.54%	10.63%	avg inc	10.18%
																																			9/1/2012			11.06%	10.28%	9.71%	9.36%	9.23%	9.32%	9.65%	10.20%	10.99%	10.88%	10.86%	10.92%	avg inc	10.20%
																																			10/1/2012			11.30%	10.41%	9.74%	9.29%	9.05%	9.03%	9.24%	9.67%	10.34%	11.24%	11.18%	11.20%	avg inc	10.14%
																																			11/1/2012			11.53%	10.55%	9.78%	9.21%	8.87%	8.74%	8.83%	9.15%	9.69%	10.47%	11.49%	11.47%	avg inc	9.98%
																																			12/1/2012			11.77%	10.68%	9.81%	9.14%	8.69%	8.45%	8.43%	8.64%	9.06%	9.72%	10.61%	11.75%	avg inc	9.73%
																																																			Total Monthly Premium	Total Old Annual Premim	Total new Annual Premim	Old Average Annual Premium	New Average Annual Premium	Avg increase
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00	0.00	0.00	0.00	0.00	#DIV/0!
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00
																																																			0.00

---

Sheet 3: Increase

HHS 10% Threshold
KYDOI Example 3
															Case 3(b)	Premium increase implemented upon renewal.
Individual Rate Filing																# enrollees
Proposed Effective Date 1/1/12																45	55	65	75	85	95	105	115	125	135	145	155
Base rate increase of 9%
Rates trended in 2012 by 11%/year
No change in any rating factors except trend
																Monthly Premium													Monthly Premium by Cohort
Experience			2011 Trend = 9%				Case 3(a) Premium schedule changes monthly, all enrollees pay same rate.
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium			Renewal Date	Premium							Renewal Date	Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Total Monthly Premium		Average Annual Increase Weighted by Premium		Average premium	Average Annual Increase Weighted by Premium
1/1/2011	45	$100.00	$100.00	$4,500			1/1/2011	100.00							1/1/2011	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,500.00	6,500.00	7,500.00	8,500.00	9,500.00	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,000.00				100.00
2/1/2011	55	$100.00	$100.72	$5,540			2/1/2011	100.72							2/1/2011	100.00	100.72	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,500.00	7,500.00	8,500.00	9,500.00	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,039.64				100.03
3/1/2011	65	$100.00	$101.45	$6,594			3/1/2011	101.45							3/1/2011	100.00	100.72	101.45	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,500.00	8,500.00	9,500.00	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,133.67				100.11
4/1/2011	75	$100.00	$102.18	$7,663			4/1/2011	102.18							4/1/2011	100.00	100.72	101.45	102.18	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,500.00	9,500.00	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,297.01				100.25
5/1/2011	85	$100.00	$102.91	$8,748			5/1/2011	102.91							5/1/2011	100.00	100.72	101.45	102.18	102.91	100.00	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,500.00	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,544.72				100.45
6/1/2011	95	$100.00	$103.66	$9,847			6/1/2011	103.66							6/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,892.04				100.74
7/1/2011	105	$100.00	$104.40	$10,962			7/1/2011	104.40							7/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		121,354.36				101.13
8/1/2011	115	$100.00	$105.16	$12,093			8/1/2011	105.16							8/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	12,500.00	13,500.00	14,500.00	15,500.00		121,947.25				101.62
9/1/2011	125	$100.00	$105.91	$13,239			9/1/2011	105.91							9/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	13,500.00	14,500.00	15,500.00		122,686.42				102.24
10/1/2011	135	$100.00	$106.68	$14,401			10/1/2011	106.68							10/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	14,500.00	15,500.00		123,587.79				102.99
11/1/2011	145	$100.00	$107.45	$15,580			11/1/2011	107.45				Average Increase			11/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	15,500.00		124,667.41				103.89
12/1/2011	155	$100.00	$108.22	$16,774			12/1/2011	108.22	1,248.73	old annual premium		9.93%			12/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		125,941.51				104.95
							1/1/2012	109.00	1,372.70	new annual premium					1/1/2012	109.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		126,346.51		7.78%		105.29	7.78%
Proposed Base Rate Increase		9%					2/1/2012	109.95							2/1/2012	109.00	109.95	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	6,047.36	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		126,854.23		8.19%		105.71	8.19%
2012 Annual Trend =		11%					3/1/2012	110.91							3/1/2012	109.00	109.95	110.91	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	6,047.36	7,209.31	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		127,469.51		8.57%		106.22	8.57%
							4/1/2012	111.88							4/1/2012	109.00	109.95	110.91	111.88	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	6,047.36	7,209.31	8,391.09	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		128,197.27		8.91%		106.83	8.91%
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium	Increase		5/1/2012	112.86							5/1/2012	109.00	109.95	110.91	111.88	112.86	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	6,047.36	7,209.31	8,391.09	9,592.97	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		129,042.52		9.21%		107.54	9.21%
1/1/2012	45	$109.00	$109.00	$4,905	9.00%		6/1/2012	113.84							6/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	6,047.36	7,209.31	8,391.09	9,592.97	10,815.20	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		130,010.41		9.44%		108.34	9.44%
2/1/2012	55	$109.00	$109.95	$6,047	9.17%		7/1/2012	114.84							7/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	105.16	105.91	106.68	107.45	108.22		4,905.00	6,047.36	7,209.31	8,391.09	9,592.97	10,815.20	12,058.06	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		131,106.14		9.61%		109.26	9.61%
3/1/2012	65	$109.00	$110.91	$7,209	9.33%		8/1/2012	115.84							8/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	105.91	106.68	107.45	108.22		4,905.00	6,047.36	7,209.31	8,391.09	9,592.97	10,815.20	12,058.06	13,321.79	13,239.18	14,401.36	15,579.62	16,774.10		132,335.05		9.71%		110.28	9.71%
4/1/2012	75	$109.00	$111.88	$8,391	9.50%		9/1/2012	116.85							9/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	106.68	107.45	108.22		4,905.00	6,047.36	7,209.31	8,391.09	9,592.97	10,815.20	12,058.06	13,321.79	14,606.69	14,401.36	15,579.62	16,774.10		133,702.56		9.71%		111.42	9.71%
5/1/2012	85	$109.00	$112.86	$9,593	9.66%		10/1/2012	117.87							10/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	107.45	108.22		4,905.00	6,047.36	7,209.31	8,391.09	9,592.97	10,815.20	12,058.06	13,321.79	14,606.69	15,913.02	15,579.62	16,774.10		135,214.22		9.61%		112.68	9.61%
6/1/2012	95	$109.00	$113.84	$10,815	9.83%		11/1/2012	118.90							11/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	108.22		4,905.00	6,047.36	7,209.31	8,391.09	9,592.97	10,815.20	12,058.06	13,321.79	14,606.69	15,913.02	17,241.05	16,774.10		136,875.65		9.40%		114.06	9.40%
7/1/2012	105	$109.00	$114.84	$12,058	10.00%		12/1/2012	119.94							12/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		4,905.00	6,047.36	7,209.31	8,391.09	9,592.97	10,815.20	12,058.06	13,321.79	14,606.69	15,913.02	17,241.05	18,591.06		138,692.61		9.07%		115.58	9.07%
8/1/2012	115	$109.00	$115.84	$13,322	10.16%		1/1/2013	120.99							1/1/2013	120.99	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		5,444.55	6,047.36	7,209.31	8,391.09	9,592.97	10,815.20	12,058.06	13,321.79	14,606.69	15,913.02	17,241.05	18,591.06		139,232.16				116.03
9/1/2012	125	$109.00	$116.85	$14,607	10.33%		2/1/2013	120.99							2/1/2013	120.99	120.99	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		5,444.55	6,654.45	7,209.31	8,391.09	9,592.97	10,815.20	12,058.06	13,321.79	14,606.69	15,913.02	17,241.05	18,591.06		139,839.24				116.53
10/1/2012	135	$109.00	$117.87	$15,913	10.50%		3/1/2013	120.99							3/1/2013	120.99	120.99	120.99	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		5,444.55	6,654.45	7,864.35	8,391.09	9,592.97	10,815.20	12,058.06	13,321.79	14,606.69	15,913.02	17,241.05	18,591.06		140,494.28				117.08
11/1/2012	145	$109.00	$118.90	$17,241	10.66%		4/1/2013	120.99							4/1/2013	120.99	120.99	120.99	120.99	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		5,444.55	6,654.45	7,864.35	9,074.25	9,592.97	10,815.20	12,058.06	13,321.79	14,606.69	15,913.02	17,241.05	18,591.06		141,177.44				117.65
12/1/2012	155	$109.00	$119.94	$18,591	10.83%		5/1/2013	120.99							5/1/2013	120.99	120.99	120.99	120.99	120.99	113.84	114.84	115.84	116.85	117.87	118.90	119.94		5,444.55	6,654.45	7,864.35	9,074.25	10,284.15	10,815.20	12,058.06	13,321.79	14,606.69	15,913.02	17,241.05	18,591.06		141,868.62				118.22
Total	1,200			$138,693			6/1/2013	120.99							6/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	114.84	115.84	116.85	117.87	118.90	119.94		5,444.55	6,654.45	7,864.35	9,074.25	10,284.15	11,494.05	12,058.06	13,321.79	14,606.69	15,913.02	17,241.05	18,591.06		142,547.47				118.79
Weighted average increase					10.1%		7/1/2013	120.99							7/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	115.84	116.85	117.87	118.90	119.94		5,444.55	6,654.45	7,864.35	9,074.25	10,284.15	11,494.05	12,703.95	13,321.79	14,606.69	15,913.02	17,241.05	18,591.06		143,193.36				119.33
							8/1/2013	120.99							8/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	116.85	117.87	118.90	119.94		5,444.55	6,654.45	7,864.35	9,074.25	10,284.15	11,494.05	12,703.95	13,913.85	14,606.69	15,913.02	17,241.05	18,591.06		143,785.42				119.82
							9/1/2013	120.99							9/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	117.87	118.90	119.94		5,444.55	6,654.45	7,864.35	9,074.25	10,284.15	11,494.05	12,703.95	13,913.85	15,123.75	15,913.02	17,241.05	18,591.06		144,302.48				120.25
							10/1/2013	120.99							10/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	118.90	119.94		5,444.55	6,654.45	7,864.35	9,074.25	10,284.15	11,494.05	12,703.95	13,913.85	15,123.75	16,333.65	17,241.05	18,591.06		144,723.11				120.60
							11/1/2013	120.99							11/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	119.94		5,444.55	6,654.45	7,864.35	9,074.25	10,284.15	11,494.05	12,703.95	13,913.85	15,123.75	16,333.65	17,543.55	18,591.06		145,025.61				120.85
							12/1/2013	120.99							12/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99		5,444.55	6,654.45	7,864.35	9,074.25	10,284.15	11,494.05	12,703.95	13,913.85	15,123.75	16,333.65	17,543.55	18,753.45		145,188.00				120.99
															Average by Cohort															Evenly Weighted Average	Not useful since there is a different number of enrollees in each cohort here see directly below.
															1/1/2012	CMS: The cells highlighted in green correspond to the vector found in F31:F42. 9.00%	8.47%	8.03%	7.70%	7.46%	7.31%	7.26%	7.30%	7.44%	7.68%	8.01%	8.45%			7.84%	Included for illustrative purposes only.
															2/1/2012	9.18%	9.17%	8.68%	8.30%	8.01%	7.82%	7.72%	7.72%	7.82%	8.01%	8.29%	8.68%			8.28%
															3/1/2012	9.36%	9.24%	9.33%	8.90%	8.56%	8.33%	8.18%	8.14%	8.18%	8.33%	8.57%	8.91%			8.67%
															4/1/2012	9.53%	9.32%	9.31%	9.50%	9.11%	8.83%	8.64%	8.55%	8.55%	8.65%	8.84%	9.14%			9.00%
															5/1/2012	9.71%	9.40%	9.29%	9.37%	9.66%	9.33%	9.10%	8.96%	8.91%	8.96%	9.11%	9.36%			9.26%
															6/1/2012	9.88%	9.47%	9.27%	9.25%	9.44%	9.83%	9.55%	9.36%	9.27%	9.28%	9.38%	9.58%			9.46%
															7/1/2012	10.04%	9.55%	9.24%	9.13%	9.22%	9.51%	10.00%	9.76%	9.63%	9.59%	9.64%	9.79%			9.59%
															8/1/2012	10.21%	9.62%	9.22%	9.02%	9.00%	9.19%	9.57%	10.16%	9.98%	9.89%	9.90%	10.01%			9.65%
															9/1/2012	10.37%	9.69%	9.20%	8.90%	8.79%	8.88%	9.16%	9.64%	10.33%	10.20%	10.16%	10.22%			9.63%
															10/1/2012	10.53%	9.76%	9.18%	8.79%	8.58%	8.57%	8.75%	9.13%	9.71%	10.50%	10.41%	10.42%			9.53%
															11/1/2012	10.69%	9.83%	9.16%	8.68%	8.38%	8.27%	8.35%	8.63%	9.10%	9.78%	10.66%	10.63%			9.35%
															12/1/2012	10.85%	9.90%	9.14%	8.57%	8.17%	7.97%	7.95%	8.13%	8.50%	9.08%	9.85%	10.83%			9.08%
															1/1/2013	11.00%	9.97%	9.12%	8.46%	7.97%	7.68%	7.57%	7.64%	7.92%	8.38%	9.05%	9.92%			8.72%
															Average by Cohort															Premium Weighted Average Increase
															1/1/2012	4.0500	4.6564	5.2211	5.7722	6.3376	6.9450	7.6225	8.3985	9.3029	10.3663	11.6216	13.1037		93.3979	7.78%
															2/1/2012	4.1311	5.0409	5.6436	6.2239	6.8099	7.4292	8.1098	8.8801	9.7691	10.8074	12.0268	13.4614		98.3333	8.19%
															3/1/2012	4.2111	5.0843	6.0650	6.6740	7.2799	7.9105	8.5937	9.3576	10.2310	11.2437	12.4271	13.8143		102.8921	8.57%
															4/1/2012	4.2899	5.1270	6.0506	7.1224	7.7477	8.3890	9.0742	9.8311	10.6884	11.6753	12.8226	14.1625		106.9806	8.92%
															5/1/2012	4.3675	5.1691	6.0365	7.0304	8.2132	8.8646	9.5512	10.3007	11.1415	12.1023	13.2133	14.5061		110.4965	9.21%
															6/1/2012	4.4440	5.2106	6.0225	6.9399	8.0239	9.3375	10.0249	10.7665	11.5903	12.5247	13.5994	14.8452		113.3292	9.44%
															7/1/2012	4.5194	5.2514	6.0088	6.8507	7.8375	9.0311	10.4952	11.2284	12.0348	12.9427	13.9810	15.1798		115.3608	9.61%
															8/1/2012	4.5937	5.2917	5.9953	6.7629	7.6541	8.7297	10.0524	11.6866	12.4753	13.3562	14.3580	15.5101		116.4659	9.71%
															9/1/2012	4.6670	5.3313	5.9819	6.6764	7.4735	8.4331	9.6169	11.0880	12.9116	13.7654	14.7306	15.8362		116.5120	9.71%
															10/1/2012	4.7392	5.3704	5.9688	6.5912	7.2957	8.1413	9.1884	10.4994	12.1380	14.1704	15.0989	16.1580		115.3598	9.61%
															11/1/2012	4.8105	5.4090	5.9559	6.5073	7.1206	7.8540	8.7669	9.9205	11.3775	13.2026	15.4630	16.4758		112.8635	9.41%
															12/1/2012	4.8807	5.4470	5.9431	6.4247	6.9483	7.5712	8.3521	9.3511	10.6297	12.2515	14.2821	16.7895		108.8709	9.07%
															1/1/2013	4.9500	5.4844	5.9305	6.3433	6.7785	7.2928	7.9439	8.7909	9.8944	11.3166	13.1218	15.3766		103.2237	8.60%
HHS 10% Threshold
KYDOI Example 4															Case 4(b)	Premium increase implemented upon renewal.
Individual Rate Filing																# enrollees
Proposed Effective Date 1/1/12																45	55	65	75	85	95	105	115	125	135	145	155
Base rate increase of 9%
Rates trended in 2012 by 12%/year
No change in any rating factors except trend
																Monthly Premium													Monthly Premium by Cohort
Experience			2011 Trend = 9%				Case 4(a) Premium schedule changes monthly, all enrollees pay same rate.
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium			Renewal Date	Premium							Renewal Date	Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Total Monthly Premium		Average Annual Increase Weighted by Premium		Average premium	Average Annual Increase Weighted by Premium
1/1/2011	45	$100.00	$100.00	$4,500			1/1/2011	100.00							1/1/2011	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,500.00	6,500.00	7,500.00	8,500.00	9,500.00	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,000.00				100.00
2/1/2011	55	$100.00	$100.72	$5,540			2/1/2011	100.72							2/1/2011	100.00	100.72	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,500.00	7,500.00	8,500.00	9,500.00	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,039.64				100.03
3/1/2011	65	$100.00	$101.45	$6,594			3/1/2011	101.45							3/1/2011	100.00	100.72	101.45	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,500.00	8,500.00	9,500.00	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,133.67				100.11
4/1/2011	75	$100.00	$102.18	$7,663			4/1/2011	102.18							4/1/2011	100.00	100.72	101.45	102.18	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,500.00	9,500.00	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,297.01				100.25
5/1/2011	85	$100.00	$102.91	$8,748			5/1/2011	102.91							5/1/2011	100.00	100.72	101.45	102.18	102.91	100.00	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,500.00	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,544.72				100.45
6/1/2011	95	$100.00	$103.66	$9,847			6/1/2011	103.66							6/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	100.00	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,500.00	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		120,892.04				100.74
7/1/2011	105	$100.00	$104.40	$10,962			7/1/2011	104.40							7/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	100.00	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	11,500.00	12,500.00	13,500.00	14,500.00	15,500.00		121,354.36				101.13
8/1/2011	115	$100.00	$105.16	$12,093			8/1/2011	105.16							8/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	100.00	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	12,500.00	13,500.00	14,500.00	15,500.00		121,947.25				101.62
9/1/2011	125	$100.00	$105.91	$13,239			9/1/2011	105.91							9/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	100.00	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	13,500.00	14,500.00	15,500.00		122,686.42				102.24
10/1/2011	135	$100.00	$106.68	$14,401			10/1/2011	106.68							10/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	100.00	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	14,500.00	15,500.00		123,587.79				102.99
11/1/2011	145	$100.00	$107.45	$15,580			11/1/2011	107.45				Average Increase			11/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	100.00		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	15,500.00		124,667.41				103.89
12/1/2011	155	$100.00	$108.22	$16,774			12/1/2011	108.22	1,248.73	old annual premium		10.39%			12/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,500.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		125,941.51				104.95
							1/1/2012	109.00	1,378.47	new annual premium					1/1/2012	109.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	5,539.64	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		126,346.51		7.96%		105.29	7.96%
Proposed Base Rate Increase		9%					2/1/2012	110.03							2/1/2012	109.00	110.03	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	6,051.89	6,594.03	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		126,858.75		8.42%		105.72	8.42%
2012 Annual Trend =		12%					3/1/2012	111.08		$1,393.98					3/1/2012	109.00	110.03	111.08	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	6,051.89	7,220.09	7,663.34	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		127,484.81		8.85%		106.24	8.85%
							4/1/2012	112.13							4/1/2012	109.00	110.03	111.08	112.13	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	6,051.89	7,220.09	8,409.93	8,747.71	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		128,231.41		9.25%		106.86	9.25%
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium	Increase		5/1/2012	113.20							5/1/2012	109.00	110.03	111.08	112.13	113.20	103.66	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	6,051.89	7,220.09	8,409.93	9,621.69	9,847.32	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		129,105.39		9.60%		107.59	9.60%
1/1/2012	45	$109.00	$109.00	$4,905	9.00%		6/1/2012	114.27							6/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	104.40	105.16	105.91	106.68	107.45	108.22		4,905.00	6,051.89	7,220.09	8,409.93	9,621.69	10,855.69	10,962.32	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		130,113.76		9.89%		108.43	9.89%
2/1/2012	55	$109.00	$110.03	$6,052	9.25%		7/1/2012	115.35							7/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	105.16	105.91	106.68	107.45	108.22		4,905.00	6,051.89	7,220.09	8,409.93	9,621.69	10,855.69	12,112.25	12,092.89	13,239.18	14,401.36	15,579.62	16,774.10		131,263.69		10.11%		109.39	10.11%
3/1/2012	65	$109.00	$111.08	$7,220	9.49%		8/1/2012	116.45							8/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	105.91	106.68	107.45	108.22		4,905.00	6,051.89	7,220.09	8,409.93	9,621.69	10,855.69	12,112.25	13,391.67	13,239.18	14,401.36	15,579.62	16,774.10		132,562.48		10.26%		110.47	10.26%
4/1/2012	75	$109.00	$112.13	$8,410	9.74%		9/1/2012	117.55							9/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	106.68	107.45	108.22		4,905.00	6,051.89	7,220.09	8,409.93	9,621.69	10,855.69	12,112.25	13,391.67	14,694.29	14,401.36	15,579.62	16,774.10		134,017.59		10.30%		111.68	10.30%
5/1/2012	85	$109.00	$113.20	$9,622	9.99%		10/1/2012	118.67							10/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	107.45	108.22		4,905.00	6,051.89	7,220.09	8,409.93	9,621.69	10,855.69	12,112.25	13,391.67	14,694.29	16,020.42	15,579.62	16,774.10		135,636.64		10.24%		113.03	10.24%
6/1/2012	95	$109.00	$114.27	$10,856	10.24%		11/1/2012	119.80							11/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	108.22		4,905.00	6,051.89	7,220.09	8,409.93	9,621.69	10,855.69	12,112.25	13,391.67	14,694.29	16,020.42	17,370.39	16,774.10		137,427.41		10.05%		114.52	10.05%
7/1/2012	105	$109.00	$115.35	$12,112	10.49%		12/1/2012	120.93							12/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		4,905.00	6,051.89	7,220.09	8,409.93	9,621.69	10,855.69	12,112.25	13,391.67	14,694.29	16,020.42	17,370.39	18,744.54		139,397.84		9.72%		116.16	9.72%
8/1/2012	115	$109.00	$116.45	$13,392	10.74%		1/1/2013	122.08							1/1/2013	122.08	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		5,493.60	6,051.89	7,220.09	8,409.93	9,621.69	10,855.69	12,112.25	13,391.67	14,694.29	16,020.42	17,370.39	18,744.54		139,986.44				116.66
9/1/2012	125	$109.00	$117.55	$14,694	10.99%		2/1/2013	122.08							2/1/2013	122.08	122.08	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		5,493.60	6,714.40	7,220.09	8,409.93	9,621.69	10,855.69	12,112.25	13,391.67	14,694.29	16,020.42	17,370.39	18,744.54		140,648.96				117.21
10/1/2012	135	$109.00	$118.67	$16,020	11.24%		3/1/2013	122.08							3/1/2013	122.08	122.08	122.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		5,493.60	6,714.40	7,935.20	8,409.93	9,621.69	10,855.69	12,112.25	13,391.67	14,694.29	16,020.42	17,370.39	18,744.54		141,364.06				117.80
11/1/2012	145	$109.00	$119.80	$17,370	11.49%		4/1/2013	122.08							4/1/2013	122.08	122.08	122.08	122.08	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		5,493.60	6,714.40	7,935.20	9,156.00	9,621.69	10,855.69	12,112.25	13,391.67	14,694.29	16,020.42	17,370.39	18,744.54		142,110.14				118.43
12/1/2012	155	$109.00	$120.93	$18,745	11.75%		5/1/2013	122.08							5/1/2013	122.08	122.08	122.08	122.08	122.08	114.27	115.35	116.45	117.55	118.67	119.80	120.93		5,493.60	6,714.40	7,935.20	9,156.00	10,376.80	10,855.69	12,112.25	13,391.67	14,694.29	16,020.42	17,370.39	18,744.54		142,865.25				119.05
Total	1,200			$139,398			6/1/2013	122.08							6/1/2013	122.08	122.08	122.08	122.08	122.08	122.08	115.35	116.45	117.55	118.67	119.80	120.93		5,493.60	6,714.40	7,935.20	9,156.00	10,376.80	11,597.60	12,112.25	13,391.67	14,694.29	16,020.42	17,370.39	18,744.54		143,607.15				119.67
Weighted average increase					10.7%		7/1/2013	122.08							7/1/2013	122.08	122.08	122.08	122.08	122.08	122.08	122.08	116.45	117.55	118.67	119.80	120.93		5,493.60	6,714.40	7,935.20	9,156.00	10,376.80	11,597.60	12,818.40	13,391.67	14,694.29	16,020.42	17,370.39	18,744.54		144,313.30				120.26
							8/1/2013	122.08							8/1/2013	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	117.55	118.67	119.80	120.93		5,493.60	6,714.40	7,935.20	9,156.00	10,376.80	11,597.60	12,818.40	14,039.20	14,694.29	16,020.42	17,370.39	18,744.54		144,960.83				120.80
							9/1/2013	122.08							9/1/2013	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	118.67	119.80	120.93		5,493.60	6,714.40	7,935.20	9,156.00	10,376.80	11,597.60	12,818.40	14,039.20	15,260.00	16,020.42	17,370.39	18,744.54		145,526.54				121.27
							10/1/2013	122.08							10/1/2013	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	119.80	120.93		5,493.60	6,714.40	7,935.20	9,156.00	10,376.80	11,597.60	12,818.40	14,039.20	15,260.00	16,480.80	17,370.39	18,744.54		145,986.92				121.66
							11/1/2013	122.08							11/1/2013	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	120.93		5,493.60	6,714.40	7,935.20	9,156.00	10,376.80	11,597.60	12,818.40	14,039.20	15,260.00	16,480.80	17,701.60	18,744.54		146,318.14				121.93
							12/1/2013	122.08							12/1/2013	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08	122.08		5,493.60	6,714.40	7,935.20	9,156.00	10,376.80	11,597.60	12,818.40	14,039.20	15,260.00	16,480.80	17,701.60	18,922.40		146,496.00				122.08
															Straight Average by Cohort															Evenly Weighted Average	Not useful since there is a different number of enrollees in each cohort here.
															1/1/2012	CMS: This area highlighted in green corresponds to the vector in F112:F123 9.00%	8.54%	8.17%	7.88%	7.68%	7.55%	7.51%	7.55%	7.67%	7.87%	8.16%	8.54%			8.01%	Included for demonstrative purposes only.
															2/1/2012	9.27%	9.25%	8.83%	8.50%	8.26%	8.10%	8.02%	8.02%	8.10%	8.26%	8.51%	8.85%			8.50%
															3/1/2012	9.54%	9.40%	9.49%	9.12%	8.84%	8.64%	8.52%	8.48%	8.53%	8.65%	8.86%	9.16%			8.94%
															4/1/2012	9.80%	9.55%	9.53%	9.74%	9.42%	9.18%	9.02%	8.94%	8.95%	9.03%	9.20%	9.46%			9.32%
															5/1/2012	10.06%	9.70%	9.57%	9.66%	9.99%	9.71%	9.51%	9.40%	9.36%	9.41%	9.54%	9.76%			9.64%
															6/1/2012	10.31%	9.85%	9.60%	9.59%	9.80%	10.24%	10.00%	9.85%	9.78%	9.79%	9.88%	10.05%			9.89%
															7/1/2012	10.56%	9.99%	9.64%	9.51%	9.60%	9.93%	10.49%	10.30%	10.18%	10.16%	10.21%	10.34%			10.08%
															8/1/2012	10.81%	10.13%	9.67%	9.43%	9.42%	9.62%	10.06%	10.74%	10.59%	10.52%	10.54%	10.63%			10.18%
															9/1/2012	11.06%	10.28%	9.71%	9.36%	9.23%	9.32%	9.65%	10.20%	10.99%	10.88%	10.86%	10.92%			10.20%
															10/1/2012	11.30%	10.41%	9.74%	9.29%	9.05%	9.03%	9.24%	9.67%	10.34%	11.24%	11.18%	11.20%			10.14%
															11/1/2012	11.53%	10.55%	9.78%	9.21%	8.87%	8.74%	8.83%	9.15%	9.69%	10.47%	11.49%	11.47%			9.98%
															12/1/2012	11.77%	10.68%	9.81%	9.14%	8.69%	8.45%	8.43%	8.64%	9.06%	9.72%	10.61%	11.75%			9.73%
															1/1/2013	12.00%	10.82%	9.84%	9.07%	8.52%	8.17%	8.04%	8.13%	8.44%	8.98%	9.75%	10.75%			9.38%
															Average by Cohort weighed by Premium															Premium Weighted Average Increase
															1/1/2012	4.0500	4.6976	5.3099	5.9112	6.5255	7.1763	7.8876	8.6836	9.5892	10.6304	11.8346	13.2307		95.5265	7.96%
															2/1/2012	4.1717	5.0858	5.7411	6.3781	7.0207	7.6927	8.4180	9.2207	10.1253	11.1576	12.3443	13.7137		101.0698	8.42%
															3/1/2012	4.2916	5.1703	6.1713	6.8433	7.5136	8.2061	8.9447	9.7533	10.6564	11.6791	12.8478	14.1903		106.2677	8.86%
															4/1/2012	4.4098	5.2535	6.1955	7.3068	8.0041	8.7164	9.4676	10.2815	11.1823	12.1950	13.3453	14.6604		111.0182	9.25%
															5/1/2012	4.5262	5.3354	6.2192	7.2475	8.4923	9.2238	9.9868	10.8053	11.7033	12.7053	13.8368	15.1244		115.2064	9.60%
															6/1/2012	4.6410	5.4162	6.2426	7.1892	8.3267	9.7281	10.5024	11.3248	12.2193	13.2102	14.3225	15.5823		118.7053	9.89%
															7/1/2012	4.7541	5.4957	6.2656	7.1318	8.1639	9.4334	11.0143	11.8401	12.7305	13.7098	14.8024	16.0341		121.3757	10.11%
															8/1/2012	4.8656	5.5741	6.2883	7.0753	8.0036	9.1436	10.5677	12.3511	13.2370	14.2041	15.2767	16.4801		123.0672	10.26%
															9/1/2012	4.9755	5.6513	6.3106	7.0197	7.8460	8.8586	10.1288	11.7300	13.7387	14.6932	15.7455	16.9204		123.6182	10.30%
															10/1/2012	5.0838	5.7274	6.3326	6.9650	7.6909	8.5784	9.6973	11.1198	12.9205	15.1772	16.2088	17.3550		122.8567	10.24%
															11/1/2012	5.1907	5.8023	6.3543	6.9111	7.5382	8.3027	9.2732	10.5203	12.1171	14.1396	16.6668	17.7840		120.6004	10.05%
															12/1/2012	5.2961	5.8763	6.3757	6.8580	7.3880	8.0315	8.8561	9.9311	11.3281	13.1211	15.3874	18.2077		116.6569	9.72%
															1/1/2013	5.4000	5.9491	6.3967	6.8057	7.2400	7.7647	8.4460	9.3521	10.5529	12.1211	14.1320	16.6642		110.8246	9.24%

---

Sheet 4: Decrease

HHS 10% Threshold
KYDOI Example 5
															Case 5(b)	Premium increase implemented upon renewal. Passes threshold test.
Individual Rate Filing																# enrollees
Proposed Effective Date 1/1/12																155	145	135	125	115	105	95	85	75	65	55	45
Base rate increase of 9%
Rates trended in 2012 by 11%/year
No change in any rating factors except trend
																Monthly Premium													Monthly Premium by Cohort
Experience			2011 Trend = 9%				Case 5(a) Premium schedule changes monthly, all enrollees pay same rate.
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium			Renewal Date	Premium							Renewal Date	Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Total Monthly Premium		Average Annual Increase Weighted by Premium		Average premium	Average Annual Increase Weighted by Premium
1/1/2011	155	$100.00	$100.00	$15,500			1/1/2011	100.00							1/1/2011	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,500.00	13,500.00	12,500.00	11,500.00	10,500.00	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		120,000.00				100.00
2/1/2011	145	$100.00	$100.72	$14,605			2/1/2011	100.72							2/1/2011	100.00	100.72	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,500.00	12,500.00	11,500.00	10,500.00	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		120,104.51				100.09
3/1/2011	135	$100.00	$101.45	$13,695			3/1/2011	101.45							3/1/2011	100.00	100.72	101.45	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,500.00	11,500.00	10,500.00	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		120,299.81				100.25
4/1/2011	125	$100.00	$102.18	$12,772			4/1/2011	102.18							4/1/2011	100.00	100.72	101.45	102.18	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,500.00	10,500.00	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		120,572.03				100.48
5/1/2011	115	$100.00	$102.91	$11,835			5/1/2011	102.91							5/1/2011	100.00	100.72	101.45	102.18	102.91	100.00	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,500.00	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		120,907.17				100.76
6/1/2011	105	$100.00	$103.66	$10,884			6/1/2011	103.66							6/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		121,291.05				101.08
7/1/2011	95	$100.00	$104.40	$9,918			7/1/2011	104.40							7/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		121,709.34				101.42
8/1/2011	85	$100.00	$105.16	$8,938			8/1/2011	105.16							8/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,500.00	6,500.00	5,500.00	4,500.00		122,147.56				101.79
9/1/2011	75	$100.00	$105.91	$7,944			9/1/2011	105.91							9/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,500.00	5,500.00	4,500.00		122,591.07				102.16
10/1/2011	65	$100.00	$106.68	$6,934			10/1/2011	106.68							10/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,500.00	4,500.00		123,025.06				102.52
11/1/2011	55	$100.00	$107.45	$5,910			11/1/2011	107.45				Average Increase			11/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,500.00		123,434.57				102.86
12/1/2011	45	$100.00	$108.22	$4,870			12/1/2011	108.22	1,248.73	old annual premium		9.93%			12/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		123,804.47				103.17
							1/1/2012	109.00	1,372.70	new annual premium					1/1/2012	109.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		125,199.47		7.90%		104.33	7.90%
Proposed Base Rate Increase		9%					2/1/2012	109.95							2/1/2012	109.00	109.95	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	15,943.05	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		126,538.01		8.37%		105.45	8.37%
2012 Annual Trend =		11%					3/1/2012	110.91							3/1/2012	109.00	109.95	110.91	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	15,943.05	14,973.18	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		127,815.89		8.76%		106.51	8.76%
							4/1/2012	111.88							4/1/2012	109.00	109.95	110.91	111.88	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	15,943.05	14,973.18	13,985.15	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		129,028.82		9.08%		107.52	9.08%
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium	Increase		5/1/2012	112.86							5/1/2012	109.00	109.95	110.91	111.88	112.86	103.66	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	15,943.05	14,973.18	13,985.15	12,978.72	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		130,172.41		9.32%		108.48	9.32%
1/1/2012	155	$109.00	$109.00	$16,895	9.00%		6/1/2012	113.84							6/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	15,943.05	14,973.18	13,985.15	12,978.72	11,953.65	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		131,242.17		9.48%		109.37	9.48%
2/1/2012	145	$109.00	$109.95	$15,943	9.17%		7/1/2012	114.84							7/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	105.16	105.91	106.68	107.45	108.22		16,895.00	15,943.05	14,973.18	13,985.15	12,978.72	11,953.65	10,909.67	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		132,233.55		9.57%		110.19	9.57%
3/1/2012	135	$109.00	$110.91	$14,973	9.33%		8/1/2012	115.84							8/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	105.91	106.68	107.45	108.22		16,895.00	15,943.05	14,973.18	13,985.15	12,978.72	11,953.65	10,909.67	9,846.54	7,943.51	6,933.99	5,909.51	4,869.90		133,141.88		9.59%		110.95	9.59%
4/1/2012	125	$109.00	$111.88	$13,985	9.50%		9/1/2012	116.85							9/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	106.68	107.45	108.22		16,895.00	15,943.05	14,973.18	13,985.15	12,978.72	11,953.65	10,909.67	9,846.54	8,764.01	6,933.99	5,909.51	4,869.90		133,962.38		9.55%		111.64	9.55%
5/1/2012	115	$109.00	$112.86	$12,979	9.66%		10/1/2012	117.87							10/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	107.45	108.22		16,895.00	15,943.05	14,973.18	13,985.15	12,978.72	11,953.65	10,909.67	9,846.54	8,764.01	7,661.82	5,909.51	4,869.90		134,690.22		9.44%		112.24	9.44%
6/1/2012	105	$109.00	$113.84	$11,954	9.83%		11/1/2012	118.90							11/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	108.22		16,895.00	15,943.05	14,973.18	13,985.15	12,978.72	11,953.65	10,909.67	9,846.54	8,764.01	7,661.82	6,539.71	4,869.90		135,320.41		9.29%		112.77	9.29%
7/1/2012	95	$109.00	$114.84	$10,910	10.00%		12/1/2012	119.94							12/1/2012	109.00	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		16,895.00	15,943.05	14,973.18	13,985.15	12,978.72	11,953.65	10,909.67	9,846.54	8,764.01	7,661.82	6,539.71	5,397.41		135,847.92		9.08%		113.21	9.08%
8/1/2012	85	$109.00	$115.84	$9,847	10.16%		1/1/2013	120.99							1/1/2013	120.99	109.95	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		18,753.45	15,943.05	14,973.18	13,985.15	12,978.72	11,953.65	10,909.67	9,846.54	8,764.01	7,661.82	6,539.71	5,397.41		137,706.37				114.76
9/1/2012	75	$109.00	$116.85	$8,764	10.33%		2/1/2013	120.99							2/1/2013	120.99	120.99	110.91	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		18,753.45	17,543.55	14,973.18	13,985.15	12,978.72	11,953.65	10,909.67	9,846.54	8,764.01	7,661.82	6,539.71	5,397.41		139,306.87				116.09
10/1/2012	65	$109.00	$117.87	$7,662	10.50%		3/1/2013	120.99							3/1/2013	120.99	120.99	120.99	111.88	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		18,753.45	17,543.55	16,333.65	13,985.15	12,978.72	11,953.65	10,909.67	9,846.54	8,764.01	7,661.82	6,539.71	5,397.41		140,667.34				117.22
11/1/2012	55	$109.00	$118.90	$6,540	10.66%		4/1/2013	120.99							4/1/2013	120.99	120.99	120.99	120.99	112.86	113.84	114.84	115.84	116.85	117.87	118.90	119.94		18,753.45	17,543.55	16,333.65	15,123.75	12,978.72	11,953.65	10,909.67	9,846.54	8,764.01	7,661.82	6,539.71	5,397.41		141,805.93				118.17
12/1/2012	45	$109.00	$119.94	$5,397	10.83%		5/1/2013	120.99							5/1/2013	120.99	120.99	120.99	120.99	120.99	113.84	114.84	115.84	116.85	117.87	118.90	119.94		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	11,953.65	10,909.67	9,846.54	8,764.01	7,661.82	6,539.71	5,397.41		142,741.06				118.95
Total	1,200			$135,848			6/1/2013	120.99							6/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	114.84	115.84	116.85	117.87	118.90	119.94		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	10,909.67	9,846.54	8,764.01	7,661.82	6,539.71	5,397.41		143,491.36				119.58
Weighted average increase					9.7%		7/1/2013	120.99							7/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	115.84	116.85	117.87	118.90	119.94		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	9,846.54	8,764.01	7,661.82	6,539.71	5,397.41		144,075.74				120.06
							8/1/2013	120.99							8/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	116.85	117.87	118.90	119.94		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	10,284.15	8,764.01	7,661.82	6,539.71	5,397.41		144,513.35				120.43
							9/1/2013	120.99							9/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	117.87	118.90	119.94		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	10,284.15	9,074.25	7,661.82	6,539.71	5,397.41		144,823.59				120.69
							10/1/2013	120.99							10/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	118.90	119.94		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	10,284.15	9,074.25	7,864.35	6,539.71	5,397.41		145,026.11				120.86
							11/1/2013	120.99							11/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	119.94		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	10,284.15	9,074.25	7,864.35	6,654.45	5,397.41		145,140.86				120.95
							12/1/2013	120.99							12/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	10,284.15	9,074.25	7,864.35	6,654.45	5,444.55		145,188.00				120.99
															Average by Cohort															Evenly Weighted Average	Not useful since there is a different number of enrollees in each cohort here see directly below.
															1/1/2012	CMS: The cells highlighted in green correspond to the vector F31:F42. 9.00%	8.47%	8.03%	7.70%	7.46%	7.31%	7.26%	7.30%	7.44%	7.68%	8.01%	8.45%			7.84%	Included for illustrative purposes only.
															2/1/2012	9.18%	9.17%	8.68%	8.30%	8.01%	7.82%	7.72%	7.72%	7.82%	8.01%	8.29%	8.68%			8.28%
															3/1/2012	9.36%	9.24%	9.33%	8.90%	8.56%	8.33%	8.18%	8.14%	8.18%	8.33%	8.57%	8.91%			8.67%
															4/1/2012	9.53%	9.32%	9.31%	9.50%	9.11%	8.83%	8.64%	8.55%	8.55%	8.65%	8.84%	9.14%			9.00%
															5/1/2012	9.71%	9.40%	9.29%	9.37%	9.66%	9.33%	9.10%	8.96%	8.91%	8.96%	9.11%	9.36%			9.26%
															6/1/2012	9.88%	9.47%	9.27%	9.25%	9.44%	9.83%	9.55%	9.36%	9.27%	9.28%	9.38%	9.58%			9.46%
															7/1/2012	10.04%	9.55%	9.24%	9.13%	9.22%	9.51%	10.00%	9.76%	9.63%	9.59%	9.64%	9.79%			9.59%
															8/1/2012	10.21%	9.62%	9.22%	9.02%	9.00%	9.19%	9.57%	10.16%	9.98%	9.89%	9.90%	10.01%			9.65%
															9/1/2012	10.37%	9.69%	9.20%	8.90%	8.79%	8.88%	9.16%	9.64%	10.33%	10.20%	10.16%	10.22%			9.63%
															10/1/2012	10.53%	9.76%	9.18%	8.79%	8.58%	8.57%	8.75%	9.13%	9.71%	10.50%	10.41%	10.42%			9.53%
															11/1/2012	10.69%	9.83%	9.16%	8.68%	8.38%	8.27%	8.35%	8.63%	9.10%	9.78%	10.66%	10.63%			9.35%
															12/1/2012	10.85%	9.90%	9.14%	8.57%	8.17%	7.97%	7.95%	8.13%	8.50%	9.08%	9.85%	10.83%			9.08%
															1/1/2013	11.00%	9.97%	9.12%	8.46%	7.97%	7.68%	7.57%	7.64%	7.92%	8.38%	9.05%	9.92%			8.72%
															Average by Cohort															Premium Weighted Average Increase
															1/1/2012	13.9500	12.2760	10.8438	9.6204	8.5744	7.6761	6.8965	6.2076	5.5817	4.9912	4.4082	3.8043		94.8302	7.90%
															2/1/2012	14.2295	13.2897	11.7212	10.3732	9.2134	8.2112	7.3375	6.5635	5.8615	5.2036	4.5619	3.9081		100.4742	8.37%
															3/1/2012	14.5048	13.4040	12.5966	11.1233	9.8493	8.7432	7.7753	6.9165	6.1386	5.4136	4.7137	4.0106		105.1895	8.77%
															4/1/2012	14.7762	13.5167	12.5667	11.8707	10.4821	9.2720	8.2099	7.2665	6.4130	5.6214	4.8637	4.1117		108.9708	9.08%
															5/1/2012	15.0435	13.6276	12.5373	11.7174	11.1120	9.7977	8.6416	7.6136	6.6849	5.8270	5.0120	4.2115		111.8261	9.32%
															6/1/2012	15.3070	13.7369	12.5083	11.5664	10.8558	10.3204	9.0701	7.9578	6.9542	6.0304	5.1584	4.3099		113.7757	9.48%
															7/1/2012	15.5667	13.8446	12.4798	11.4178	10.6037	9.9818	9.4957	8.2993	7.2209	6.2317	5.3031	4.4070		114.8521	9.57%
															8/1/2012	15.8228	13.9508	12.4517	11.2715	10.3555	9.6486	9.0951	8.6379	7.4852	6.4308	5.4461	4.5029		115.0988	9.59%
															9/1/2012	16.0752	14.0553	12.4240	11.1273	10.1112	9.3208	8.7010	8.1955	7.7470	6.6278	5.5875	4.5976		114.5702	9.55%
															10/1/2012	16.3240	14.1584	12.3967	10.9854	9.8706	8.9982	8.3134	7.7604	7.2828	6.8228	5.7272	4.6910		113.3310	9.44%
															11/1/2012	16.5694	14.2600	12.3698	10.8456	9.6338	8.6807	7.9320	7.3325	6.8265	6.3568	5.8653	4.7833		111.4557	9.29%
															12/1/2012	16.8114	14.3602	12.3434	10.7078	9.4006	8.3681	7.5567	6.9116	6.3778	5.8989	5.4174	4.8744		109.0282	9.09%
															1/1/2013	17.0500	14.4590	12.3172	10.5721	9.1709	8.0604	7.1873	6.4976	5.9366	5.4487	4.9773	4.4642		106.1414	8.85%
HHS 10% Threshold
KYDOI Example 6															Case 6(b)	Premium increase implemented upon renewal. Passes threshold test.
Individual Rate Filing																# enrollees
Proposed Effective Date 1/1/12																155	145	135	125	115	105	95	85	75	65	55	45
Base rate increase of 9%
Rates trended in 2012 by 12%/year
No change in any rating factors except trend
																Monthly Premium													Monthly Premium by Cohort
Experience			2011 Trend = 9%				Case 6(a) Premium schedule changes monthly, all enrollees pay same rate.
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium			Renewal Date	Premium							Renewal Date	Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Jan renewal	Feb renewal	March renewal	April renewal	May renewal	June renewal	July renewal	Aug renewal	Sept renewal	Oct renewal	Nov renewal	Dec renewal		Total Monthly Premium		Average Annual Increase Weighted by Premium		Average premium
1/1/2011	155	$100.00	$100.00	$15,500			1/1/2011	100.00							1/1/2011	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,500.00	13,500.00	12,500.00	11,500.00	10,500.00	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		120,000.00				100.00
2/1/2011	145	$100.00	$100.72	$14,605			2/1/2011	100.72							2/1/2011	100.00	100.72	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,500.00	12,500.00	11,500.00	10,500.00	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		120,104.51				100.09
3/1/2011	135	$100.00	$101.45	$13,695			3/1/2011	101.45							3/1/2011	100.00	100.72	101.45	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,500.00	11,500.00	10,500.00	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		120,299.81				100.25
4/1/2011	125	$100.00	$102.18	$12,772			4/1/2011	102.18							4/1/2011	100.00	100.72	101.45	102.18	100.00	100.00	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,500.00	10,500.00	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		120,572.03				100.48
5/1/2011	115	$100.00	$102.91	$11,835			5/1/2011	102.91							5/1/2011	100.00	100.72	101.45	102.18	102.91	100.00	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,500.00	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		120,907.17				100.76
6/1/2011	105	$100.00	$103.66	$10,884			6/1/2011	103.66							6/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	100.00	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,500.00	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		121,291.05				101.08
7/1/2011	95	$100.00	$104.40	$9,918			7/1/2011	104.40							7/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	100.00	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,500.00	7,500.00	6,500.00	5,500.00	4,500.00		121,709.34				101.42
8/1/2011	85	$100.00	$105.16	$8,938			8/1/2011	105.16							8/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	100.00	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,500.00	6,500.00	5,500.00	4,500.00		122,147.56				101.79
9/1/2011	75	$100.00	$105.91	$7,944			9/1/2011	105.91							9/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	100.00	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,500.00	5,500.00	4,500.00		122,591.07				102.16
10/1/2011	65	$100.00	$106.68	$6,934			10/1/2011	106.68							10/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	100.00	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,500.00	4,500.00		123,025.06				102.52
11/1/2011	55	$100.00	$107.45	$5,910			11/1/2011	107.45				Average Increase			11/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	100.00		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,500.00		123,434.57				102.86
12/1/2011	45	$100.00	$108.22	$4,870			12/1/2011	108.22	1,248.73	old annual premium		10.39%			12/1/2011	100.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		15,500.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		123,804.47				103.17
							1/1/2012	109.00	1,378.47	new annual premium					1/1/2012	109.00	100.72	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	14,604.51	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		125,199.47		8.06%		104.33
Proposed Base Rate Increase		9%					2/1/2012	110.03							2/1/2012	109.00	110.03	101.45	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	15,954.97	13,695.30	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		126,549.93		8.56%		105.46
2012 Annual Trend =		12%					3/1/2012	111.08							3/1/2012	109.00	110.03	111.08	102.18	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	15,954.97	14,995.58	12,772.23	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		127,850.21		8.98%		106.54
							4/1/2012	112.13							4/1/2012	109.00	110.03	111.08	112.13	102.91	103.66	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	15,954.97	14,995.58	14,016.55	11,835.14	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		129,094.53		9.32%		107.58
Renewal Date	# Policies	Base Rate	Trended Rate	Total Premium	Increase		5/1/2012	113.20							5/1/2012	109.00	110.03	111.08	112.13	113.20	103.66	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	15,954.97	14,995.58	14,016.55	13,017.58	10,883.88	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		130,276.98		9.57%		108.56
1/1/2012	155	$109.00	$109.00	$16,895	9.00%		6/1/2012	114.27							6/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	104.40	105.16	105.91	106.68	107.45	108.22		16,895.00	15,954.97	14,995.58	14,016.55	13,017.58	11,998.40	9,918.29	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		131,391.50		9.74%		109.49
2/1/2012	145	$109.00	$110.03	$15,955	9.25%		7/1/2012	115.35							7/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	105.16	105.91	106.68	107.45	108.22		16,895.00	15,954.97	14,995.58	14,016.55	13,017.58	11,998.40	10,958.70	8,938.22	7,943.51	6,933.99	5,909.51	4,869.90		132,431.91		9.83%		110.36
3/1/2012	135	$109.00	$111.08	$14,996	9.49%		8/1/2012	116.45							8/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	105.91	106.68	107.45	108.22		16,895.00	15,954.97	14,995.58	14,016.55	13,017.58	11,998.40	10,958.70	9,898.19	7,943.51	6,933.99	5,909.51	4,869.90		133,391.88		9.84%		111.16
4/1/2012	125	$109.00	$112.13	$14,017	9.74%		9/1/2012	117.55							9/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	106.68	107.45	108.22		16,895.00	15,954.97	14,995.58	14,016.55	13,017.58	11,998.40	10,958.70	9,898.19	8,816.57	6,933.99	5,909.51	4,869.90		134,264.95		9.77%		111.89
5/1/2012	115	$109.00	$113.20	$13,018	9.99%		10/1/2012	118.67							10/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	107.45	108.22		16,895.00	15,954.97	14,995.58	14,016.55	13,017.58	11,998.40	10,958.70	9,898.19	8,816.57	7,713.53	5,909.51	4,869.90		135,044.49		9.63%		112.54
6/1/2012	105	$109.00	$114.27	$11,998	10.24%		11/1/2012	119.80							11/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	108.22		16,895.00	15,954.97	14,995.58	14,016.55	13,017.58	11,998.40	10,958.70	9,898.19	8,816.57	7,713.53	6,588.77	4,869.90		135,723.75		9.43%		113.10
7/1/2012	95	$109.00	$115.35	$10,959	10.49%		12/1/2012	120.93							12/1/2012	109.00	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		16,895.00	15,954.97	14,995.58	14,016.55	13,017.58	11,998.40	10,958.70	9,898.19	8,816.57	7,713.53	6,588.77	5,441.96		136,295.81		9.18%		113.58
8/1/2012	85	$109.00	$116.45	$9,898	10.74%		1/1/2013	120.99							1/1/2013	120.99	110.03	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		18,753.45	15,954.97	14,995.58	14,016.55	13,017.58	11,998.40	10,958.70	9,898.19	8,816.57	7,713.53	6,588.77	5,441.96		138,154.26				115.13
9/1/2012	75	$109.00	$117.55	$8,817	10.99%		2/1/2013	120.99							2/1/2013	120.99	120.99	111.08	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		18,753.45	17,543.55	14,995.58	14,016.55	13,017.58	11,998.40	10,958.70	9,898.19	8,816.57	7,713.53	6,588.77	5,441.96		139,742.84				116.45
10/1/2012	65	$109.00	$118.67	$7,714	11.24%		3/1/2013	120.99							3/1/2013	120.99	120.99	120.99	112.13	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		18,753.45	17,543.55	16,333.65	14,016.55	13,017.58	11,998.40	10,958.70	9,898.19	8,816.57	7,713.53	6,588.77	5,441.96		141,080.91				117.57
11/1/2012	55	$109.00	$119.80	$6,589	11.49%		4/1/2013	120.99							4/1/2013	120.99	120.99	120.99	120.99	113.20	114.27	115.35	116.45	117.55	118.67	119.80	120.93		18,753.45	17,543.55	16,333.65	15,123.75	13,017.58	11,998.40	10,958.70	9,898.19	8,816.57	7,713.53	6,588.77	5,441.96		142,188.11				118.49
12/1/2012	45	$109.00	$120.93	$5,442	11.75%		5/1/2013	120.99							5/1/2013	120.99	120.99	120.99	120.99	120.99	114.27	115.35	116.45	117.55	118.67	119.80	120.93		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	11,998.40	10,958.70	9,898.19	8,816.57	7,713.53	6,588.77	5,441.96		143,084.38				119.24
Total	1,200			$136,296			6/1/2013	120.99							6/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	115.35	116.45	117.55	118.67	119.80	120.93		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	10,958.70	9,898.19	8,816.57	7,713.53	6,588.77	5,441.96		143,789.93				119.82
Weighted average increase					10.1%		7/1/2013	120.99							7/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	116.45	117.55	118.67	119.80	120.93		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	9,898.19	8,816.57	7,713.53	6,588.77	5,441.96		144,325.28				120.27
							8/1/2013	120.99							8/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	117.55	118.67	119.80	120.93		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	10,284.15	8,816.57	7,713.53	6,588.77	5,441.96		144,711.24				120.59
							9/1/2013	120.99							9/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	118.67	119.80	120.93		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	10,284.15	9,074.25	7,713.53	6,588.77	5,441.96		144,968.91				120.81
							10/1/2013	120.99							10/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	119.80	120.93		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	10,284.15	9,074.25	7,864.35	6,588.77	5,441.96		145,119.73				120.93
							11/1/2013	120.99							11/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.93		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	10,284.15	9,074.25	7,864.35	6,654.45	5,441.96		145,185.41				120.99
							12/1/2013	120.99							12/1/2013	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99	120.99		18,753.45	17,543.55	16,333.65	15,123.75	13,913.85	12,703.95	11,494.05	10,284.15	9,074.25	7,864.35	6,654.45	5,444.55		145,188.00				120.99
															Average by Cohort															Evenly Weighted Average	Not useful since there is a different number of enrollees in each cohort here see directly below.
															1/1/2012	CMS: The cells highlighted in green correspond to the vector F112:F123. 9.00%	8.54%	8.17%	7.88%	7.68%	7.55%	7.51%	7.55%	7.67%	7.87%	8.16%	8.54%			8.01%	Included for illustrative purposes only.
															2/1/2012	9.18%	9.25%	8.83%	8.50%	8.26%	8.10%	8.02%	8.02%	8.10%	8.26%	8.51%	8.85%			8.49%
															3/1/2012	9.36%	9.31%	9.49%	9.12%	8.84%	8.64%	8.52%	8.48%	8.53%	8.65%	8.86%	9.16%			8.91%
															4/1/2012	9.53%	9.37%	9.44%	9.74%	9.42%	9.18%	9.02%	8.94%	8.95%	9.03%	9.20%	9.46%			9.27%
															5/1/2012	9.71%	9.44%	9.39%	9.58%	9.99%	9.71%	9.51%	9.40%	9.36%	9.41%	9.54%	9.76%			9.57%
															6/1/2012	9.88%	9.50%	9.34%	9.41%	9.71%	10.24%	10.00%	9.85%	9.78%	9.79%	9.88%	10.05%			9.78%
															7/1/2012	10.04%	9.56%	9.29%	9.25%	9.43%	9.84%	10.49%	10.30%	10.18%	10.16%	10.21%	10.34%			9.92%
															8/1/2012	10.21%	9.62%	9.24%	9.09%	9.16%	9.45%	9.98%	10.74%	10.59%	10.52%	10.54%	10.63%			9.98%
															9/1/2012	10.37%	9.68%	9.20%	8.93%	8.89%	9.07%	9.48%	10.11%	10.99%	10.88%	10.86%	10.92%			9.95%
															10/1/2012	10.53%	9.73%	9.15%	8.78%	8.62%	8.69%	8.98%	9.50%	10.25%	11.24%	11.18%	11.20%			9.82%
															11/1/2012	10.69%	9.79%	9.10%	8.63%	8.36%	8.32%	8.50%	8.90%	9.53%	10.39%	11.49%	11.47%			9.60%
															12/1/2012	10.85%	9.85%	9.06%	8.48%	8.11%	7.95%	8.02%	8.30%	8.81%	9.55%	10.53%	11.75%			9.27%
															1/1/2013	11.00%	9.90%	9.01%	8.33%	7.86%	7.59%	7.55%	7.72%	8.11%	8.73%	9.58%	10.67%			8.84%
															Average by Cohort															Premium Weighted Average Increase
															1/1/2012	13.9500	12.3845	11.0282	9.8520	8.8286	7.9317	7.1364	6.4183	5.7535	5.1184	4.4890	3.8412		96.7318	8.06%
															2/1/2012	14.2295	13.4080	11.9239	10.6301	9.4986	8.5025	7.6163	6.8153	6.0752	5.3722	4.6823	3.9814		102.7353	8.56%
															3/1/2012	14.5048	13.5010	12.8174	11.4054	10.1654	9.0699	8.0928	7.2090	6.3938	5.6233	4.8733	4.1198		107.7759	8.98%
															4/1/2012	14.7762	13.5925	12.7476	12.1780	10.8291	9.6340	8.5659	7.5994	6.7094	5.8716	5.0620	4.2563		111.8219	9.32%
															5/1/2012	15.0435	13.6827	12.6788	11.9690	11.4896	10.1947	9.0357	7.9865	7.0220	6.1174	5.2484	4.3910		114.8593	9.57%
															6/1/2012	15.3070	13.7716	12.6112	11.7633	11.1649	10.7521	9.5022	8.3705	7.3316	6.3605	5.4327	4.5239		116.8914	9.74%
															7/1/2012	15.5667	13.8591	12.5445	11.5609	10.8456	10.3351	9.9653	8.7514	7.6383	6.6010	5.6147	4.6551		117.9378	9.83%
															8/1/2012	15.8228	13.9453	12.4789	11.3617	10.5314	9.9251	9.4793	9.1291	7.9422	6.8390	5.7946	4.7846		118.0340	9.84%
															9/1/2012	16.0752	14.0303	12.4143	11.1656	10.2223	9.5220	9.0017	8.5972	8.2432	7.0745	5.9724	4.9124		117.2310	9.77%
															10/1/2012	16.3240	14.1140	12.3507	10.9725	9.9181	9.1255	8.5322	8.0748	7.6886	7.3075	6.1482	5.0385		115.5945	9.63%
															11/1/2012	16.5694	14.1965	12.2879	10.7824	9.6187	8.7355	8.0706	7.5614	7.1440	6.7531	6.3219	5.1631		113.2045	9.43%
															12/1/2012	16.8114	14.2779	12.2262	10.5952	9.3241	8.3518	7.6167	7.0569	6.6090	6.2089	5.7905	5.2861		110.1546	9.18%
															1/1/2013	17.0500	14.3581	12.1653	10.4108	9.0341	7.9743	7.1704	6.5610	6.0836	5.6746	5.2692	4.8006		106.5519	8.88%