The actuary has a natural interest in demand management because such risk management tool should be properly designed, administered and measured.
Health care plan demand management is a risk control technique that uses:
- Self-help and self-care techniques
- Wellness and preventive programs
- Behavior modification initiatives
- Utilization review programs dealing with both chronic diseases (diabetes, e.g.) as well as large claims such as AIDS
- Benefit design amendments (anti-duplication, high/low benefits, etc.)