actuarial value

Actuarial value is a measure used in health insurance to indicate the percentage of medical expenses that a plan will cover on average. For example, if a health insurance plan has an actuarial value of 80%, it means that, over a large group of people, the insurance would pay 80% of their healthcare costs, while individuals would be responsible for the remaining 20%. This value helps consumers understand how much financial support they can expect from their insurance and aids in comparing different plans based on their coverage levels.