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Error Analysis: Annual Cost per Insured


Notes:

Since there are a number of estimates used to arrive at these costs, the study does an error analysis to determine the range of error.
The method used was, for every estimate or assumption, to also determine the most extreme possible values of that estimate.
These are referred to as the “minimum cost” and “maximum cost” values.
For example, major surgeons who did not respond must have done at least zero surgeries (minimum cost) and would not have done more surgeries than the busiest surgeon on the list (maximum cost.)

All calculations were worked through using all minimum cost, all best estimate, and all maximum cost values.
The resulting costs are referred the minimum cost, best estimate, and maximum cost results.

Using this methodology, the 64 cent number (best estimate) could have been as low as 13 cents (minimum cost) or as high as $5.31 (maximum cost.)
Even the highest number, $5.31, compares favorably with the cost of Domestic Partner Benefits (1%, or $40) or the total cost of health insurance ($4000.)