What are the benefits of Dryden’s Advanced Funding program?
Dryden’s program provides budgetability, predictability, favorable financial accounting presentation, asset/liability management (investment income), beneficial tax treatment, opportunity to build needed reserves to buy-down future risk. Dryden quantifies the upper exposure limit, which includes reserve and trend. An Advanced Funding transaction would be implemented based on the actuarial analysis performed. While Advanced Funding doesn’t lower the cost of claims, Dryden has access to health care management vendors and can integrate their compliance-based programs which significantly reduce the overall cost of claims. In this respect, the overall cost of claims is reduced over time and can be greatly enhanced through the integration of Dryden’s program.
