BASIC BACKGROUND FOR EXAMPLES

Subpart 1. Inflation assumptions for 1985. The examples which follow assume that the actuarial equivalence of a series of plans is being calculated for calendar year 1985. Inflation was assumed to be 15.5 percent and 8.0 percent for hospital related and all other services, respectively. Subp. 2. Values published by commissioner for 1985. ASP value for 1984 190* ASP value for current year (1985*) 220* SURG value for 1984 4,000.00 SURG value for current year (1985*) 4,320.00* ASP factor for 1985* 1.155* SURG factor for 1985* 1.080* COMP factor for 1985* 1.121* *Estimated. Please substitute the actual values. Subp. 3. Point values for qualified plans in 1985. The following are the revised point values used to determine plans which are actuarially equivalent to qualified plans 1, 2, and 3 for 1985. Qualified Plan Number If plan has the indicated number of points then plan is actuarially equivalent to the qualified plan in: 1984 1985 3 1192 + points 1216 + points 2 911 + points 957 + points 1 767 + points 847 + points Nonqualified Less than 767 Less than 847