Insight
Capital generation and return metrics in Europe
Despite its ease of calculation, capital generation and return—measured as a change in eligible own funds—may not be the most useful metric.
Among the various care delivery models that exist, direct primary care (DPC) is gaining traction among self-funded employers. DPC provides primary care services outside of a major medical insurance benefit and is not administered by a third party. In this white paper, we discuss the common key features of DPC offerings. We also present an actuarial perspective on claims for a midsized employer that implemented a DPC point solution in its self-funded medical benefit. We compared utilization and cost outcomes for about 900 members enrolled in DPC to the same outcomes for about 1,100 members not enrolled in DPC during a two-year period. A discussion of implications for employers follows, along with key considerations, such as program objectives, clinic placement, benefit design, operational effectiveness, and financial results.
Insight
Despite its ease of calculation, capital generation and return—measured as a change in eligible own funds—may not be the most useful metric.