ANTHEM HEALTH PLANS OF MAINE, INC.
Statement of Actuarial Opinion
As of December 31,2010
GaJy L. Rose, F.S.A
Terry M. Long, F.S.A.
David L. Batchelder, ASA
Leon L. Langlitz, F.S.A.
GaJy R. McElwain, FLMJ
Christopher H. Davis. F.SA
Anthony G. Proulx, F.S.A.
Thomas L. Handley, F.SA
Karen E. EIsom, FSA
Jill J. Humes. F.S.A.
D. Palrick GlcM, ASA, ACAS.
Jan E. DeClue, A.SA
Patricia A Peebles, A.S.A.
Glenn A. Tobleman. F.S.A., F.C.A.S.
S. Scott Gibson, F.S.A
Cabe W. Chadick, F.S.A.
Steven D. Bryson, F.S.A.
Michael A. Maybeny, F.S.A.
Gregory S. Wilson, F.C.A's.
David M. Dillon, F.S.A.
BoMie S. Albritton, F.S.A.
Brian D. Rankin, F.S.A.
Wesley R Campbell, F.S.A.
Jacqueline B. Lee, F.S.A.
Robert B. Thomas. Jr., F.S.A., C.F.A (of Counsel)
Roger K. Annin, F.S.A., F.lA
Timothy A. DeMars. F.S.A., F.I.A.
David A. Palmer, C.F.E.
- I, Karen E. Elsom, am a Consulting Actuary with Lewis & Ellis, Inc., Actuaries and Consultants,
and am a member of the American Academy of Actuaries. I meet the Academy qualification
standards for rendering this opinion and am familiar with the valuation requirements for Health
Plans. As part of the financial examination process by the Maine Bureau of Insurance, I
participated in the examination of Anthem Health Plans of Maine, Inc. I recalculated and verified
certain actuarial items appearing in the Annual Statement as of December 31, 2010 of Anthem
Health Plans of Maine, Inc., South Portland, Maine as prepared for filing with state regulatory
I have examined the actuarial assumptions and actuarial methods used in determining loss reserves,
actuarial liabilities and related items listed below, as shown in the NAIC Annual Statement of the
Company at December 31,2010.
(1) Claims Unpaid (page 3, Item 1) $68,798,486
(2) Unpaid Claim Adjustment Expenses (Page 3, Item 3) 2,160,209
(3) Aggregate Health Policy Reserves (page 3, Item 4) 68,779,925
(4) Aggregate Health Claim Reserves (page 3, Item 7) 2,234,693
(5) Accrued Retrospective Premiums (Page 2, Item 15.3) 558,120
My examination included such review of the actuarial assumptions and actuarial methods used by
the Company and such tests of the actuarial calculations as I considered necessary. I relied upon in
force and claims data supplied by Anthem Health Plans of Maine, Inc. The claims data was tested
for completeness and accuracy by the Maine examiners and me.
||Lewis & Ellis, Inc. ' 11225 College Blvd.' Suite 320' Overland Park, KS 66210-2798
913/491-3388' Fax 913/642-9777· www.LewisEllis.com
Anthem Health Plans of Maine, Inc.
In my opinion, the amounts carried in the balance sheet on account of the actuarial items identified
(l) are computed in accordance with presently accepted actuarial standards consistently
applied and are fairly stated in accordance with sound actuarial principles;
(2) are based on actuarial assumptions relevant to contract provisions and appropriate
to the purpose for which the statement was prepared;
(3) meet the requirements of the insurance laws and related rules and regulations of the
state of Maine;
(4) make good and sufficient provision in aggregate for all unpaid claims and other
actuarial liabilities of the organization under the terms of its contracts and
agreements, except as may be noted in the following report;
(5) are, to the best of my knowledge, computed on the basis of assumptions consistent
with those used in computing the corresponding items in the Annual Statement of
the preceding year end except as may be noted in the following report; and
(6) include appropriate provision, in the aggregate, for the above specified actuarial
items which ought to be established.
The actuarial methods, considerations and analyses used in forming my opinion conform to the
appropriate Standards of Practice as promulgated by the Actuarial Standards Board which
standards form the basis of this statement of opinion.
The actuarial liabilities and certain actuarial related items referred to in this opinion are estimates
based on the claims data provided by the Company. The exact liabilities will not be known until a
sufficient passage of time permits the filing and payment of all outstanding claims.
January 24, 2012
||Karen E. Elsom, FSA, MAAA
LEWIS & ELLIS, INC.
11225 College Blvd., Suite 320
Overland Park, KS 66210
Telephone Number: (913) 491-3388
||Lewis & Ellis, Inc. • Actuaries & Consultants