Note 24-E

[Edry]

Instructions

(2) Impact of Risk Sharing Provision of the Affordable Care Act on admitted assets, liabilities and revenue for the current year.

Does this mean that you only include the amounts that increased assets and liabilities related to the current year or do you include the total amount of the asset or liability as of statement date, which would include the balances related to the prior year(s)?

[Glenn]

Edry,
Please see this excerpt from another Health Forum thread which addresses Note 24E:

24 (E) 4 is a roll forward of the asset/liability, not a development. It takes 24 (E) 3 section c and breaks it out by program benefit year. Instructions say "Provide an additional roll-forward or the risk corridors asset and liability balances and subsequent adjustments by program benefit year. The beginning payable or receivable in the roll-forward will reflect the prior year end balance for the specified benefit year." d is total of a-c. It will agree to 24 (E) 3 Line 3 c.
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The Key is these are the balances at the statement date by program benefit year. Note reported by benefit year.

Regards,
Glenn S Sackett

[Edry]

I'm sorry, I should have been more specific. My question is on 24 (E) 2.
I understand Operations (Revenue & Expenses) would reflect current year only, but what about the payable and receivable? Should the payable or receivable balances on schedule (E) 2 reflect the total amount of the payable or receivable balances regardless of the benefit year?

[Glenn]

Hello again Edry,
Here's the Note 24E(2) instructions:

Impact of Risk-Sharing Provisions of the Affordable Care Act on Admitted Assets, Liabilities and Revenue for the Current Year

The financial statements shall disclose the admitted assets, liabilities and revenue elements by program regarding the risk-sharing provisions of the Affordable Care Act for the reporting periods that are impacted by programs. The disclosure should include the following:

? Permanent ACA Risk Adjustment Program
? Premium adjustments receivable due to ACA Risk Adjustment
? Risk adjustment user fees payable for ACA Risk Adjustment
? Premium adjustments payable due to ACA Risk Adjustment
? Reported as revenue in premium for accident and health contracts (written/collected) due to ACA Risk Adjustment
? Reported in expenses as ACA Risk Adjustment user fees (incurred/paid)
? Transitional ACA Reinsurance Program
? Amounts recoverable for claims paid due to ACA Reinsurance
? Amounts recoverable for claims unpaid due to ACA Reinsurance (Contra Liability)
? Amounts receivable relating to uninsured plans for contributions for ACA Reinsurance
? Liabilities for contributions payable due to ACA Reinsurance ? not reported as ceded premium
? Ceded reinsurance premiums payable due to ACA Reinsurance
? Liabilities for amounts held under uninsured plans contributions for ACA Reinsurance
? Ceded reinsurance premiums due to ACA Reinsurance
? Reinsurance recoveries (income statement) due to ACA Reinsurance payments or expected payments
? ACA Reinsurance contributions ? not reported as ceded premium
? Temporary ACA Risk Corridors Program
? Accrued retrospective premium due to ACA Risk Corridors
? Reserve for rate credits or policy experience rating refunds due to ACA Risk Corridors
? Effect of ACA Risk Corridors on net premium income (paid/received)
? Effect of ACA Risk Corridors on change in reserves for rate credits


These would be the balances on the balance sheet and current years activity in the summary of operations.. As these programs are part of the balances in reporting lines with other activity besides ACA programs on pages 2,3, and 4. This disclosure aids the readers in isolating the ACA program activity.

Regards
Glenn