The NAIC has developed a risk-based capital (RBC) formula for all health plans that accept...

is a set of calculations, based on information in a health plan's annual financial report, that yields a target capital requirement for the organization

fails to take into account a health plan's underwriting risk, which is the risk that the premiums the health plan receives will be insufficient to pay for the healthcare services it provides to its plan members

applies to all health plans in the United States

fails to assess the specific level of risk faced by each health plan