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(a) STATUTORY FINANCIAL STATEMENTS Increasingly, HMOs and provider-sponsored networks are coming under regulation by state departments of insurance Generally speaking, regulated insurers are required by their state of domicile to submit annually a set of audited nancial statements that are prepared using that state s prescribed regulatory accounting principles ( statutory nancial statements ) In 1999, the National Association of Insurance Commissioners completed a process to codify statutory accounting practices (SAP) for managed care organizations, resulting in a revised Accounting Practices and Procedures Manual Nine of the Statements of Statutory Accounting Principles (SSAPs) included in the Manual have been speci cally modi ed or written to address issues related to managed care These include SSAP No 25, Accounting for and Disclosures about Transactions with Af liates and Other Related Parties, No 35, Guaranty Fund and Other Assessments, No 47, Uninsured Plans, No 50, Classi cations and De nitions of Insurance or Managed Care Contracts in Force, No 54, Individual and Group Accident and Health Contracts, No 55, Unpaid Claims, Losses and Loss Adjustment Expenses, No 66, Retrospectively Rated Insurance Contracts, No 73, Health Care Delivery Assets Supplies, Pharmaceuticals and Surgical Supplies, Durable Medical Equipment, Furniture, Medical Equipment and Fixtures, and Leasehold Improvements in Health Care Facilities, and No 84, Health Care Receivables All other SSAPs should be considered that are applicable to the particular managed care entity The Manual is updated annually to re ect revisions or additions to SAP It is expected that most states will require insurers to comply with most, if not all, provisions of the Manual States may adopt the Manual in whole, or in part, as an element of prescribed SAP in those states If, however, the requirements of state laws, regulations, and administrative rules differ from guidance provided in the Manual, those state laws, regulations, and administrative rules preempt the guidance in the Manual (b) RISK ASED CAPITAL FOR MANAGED CARE ORGANIZATIONS State laws generally require insurers to maintain minimum levels of capital or surplus The NAIC has implemented a risk-based capital (RBC) formula for managed care organizations under which affected managed care organizations must calculate and report to regulators its capital requirement and total adjusted capital There are ve principal elements to the RBC formula: af liated investment risk, asset risk,.

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rewait and d o i t over again a t some point That incurs a t least two context switches, each of which is roughly 1 0,000 cycles And priority boosting can increase the chances of those threads actively preempting another On a sin gle processor machine, the priority boost typically has the intended effect: since there's only one processor, it's very likely that allowing the thread access to the sole processor will ensure it acquires the resource But on multi-processor machines, there are plenty of other processors to run code in the 1 0,000 cycles or so that it takes for the awakened thread to context switch back in, in which time other threads may fend for the resource A stampede is the extreme case of this problem This occurs when many threads fight for a shared resource, and when only some of them can actu ally win As an example, imagine that critical regions used a manual-reset event nternally (unlike the auto-reset event that they actually use); whenever the lock became available, all of the waiting threads would be awakened All but one of them will immediately find that they cannot acquire the lock and must instead go back and wait Ignoring the fundamentally bleak outlook of the scenario to begin with, if we have 1 00 threads waiting for a single lock, this approach is going to wreak havoc One hundred threads will be awak ened, preempt other (useful) threads, drag a data into the caches, fight for cache lines, and waste thousands upon thousands of cycles of processor time that could have been used to make forward progress And yet only one of them will ultimately acquire the lock; the rest will have to rewait Stampedes are often a sign of a wake-all being used when wake-one would have been a better choice Often this is done because there is no other reasonable way to implement an algorithm For example, an interviewing question I often use is "implement a counting semaphore" Those unlucky interviewees who first choose to use interlocked operations and Windows events run into a tradeoff between the possibility of missed pulses and the pOSSibility of stampedes This tradeoff is not uncommon.

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