Discuss the effects of monetary policy and fiscal policy in a recession period.

How is aggregate expenditure related to aggregate output.

(8 points) You are an actuary at Golden Gate Corporation, which currently offers medical benefits to its employees. You have been asked to develop a plan to offer prescription drug coverage for 2015. (a) (/ point) List and describe different prescription drug coverage types that are typically available. (b) (/ point) List and describe different formulary options that are available for prescription drug plans. The PBM provides you the following 2013 claims experience for a group with similar characteristics to your own: Annual Annual Allowed Unit Cost Utilization Costs Scripts Trend Trend Non Specialty $45,000,000 900,000 10% 2% Specialty $15,000,000 100,000 25% 4% Assumed Distribution of Number of Scripts: Non Specialty Specialty Tier 1 70% 0% Tier 2 15% 0% Tier 3 10% 0% Tier 4 5% 100% Assumed Distribution of Allowed Cost: Non Specialty Specialty Tier 1 45% 0% Tier 2 20% 0% Tier 3 20% 0% Tier 4 15% 100% You are recommending offering the following 4-tier benefit structure: Member Cost Share Tier 1 $10 copay Tier 2 $25 copay Tier 3 $40 copay Tier 4 25% coinsurance(c) (2 points) Explain how ASOP 23 applies to this situation. (d) (4 points) Calculate the expected utilization and plan cost, both by tier and in total, for 2015 for the proposed benefits. Show your work