Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Oxford Health Plan (OXHP) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Haegin who wrote (477)	12/10/1997 12:21:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 2068

In general, the books are closed on claims for a given month 6 months after that month. So now, they are increasing their reserves to account for current claims that have been incurred but not paid. We'll know for sure where they stand on this current month 6 months from now, but OXHP is estimating that it will pay out its reserves in the next 6 mos at a decreasing percentage/month as we go out further. Accountants correct me if I'm wrong. This is where we were misled earlier and where Oxford has made its biggest mistakes - underestimating the IBNR (claims incurred but not reported) going forward. And it also makes it easier to understand how it would take many months to realize the error. But OXHP's charges on Q3, if anything, should've overestimated their current claims, and evidently they weren't even close. The reasons for this are now up in the air. Mike