Supplemental Health Care Exhibit

[SherylK-PCHC]

If we choose the .8% of earned Premium option for our QIA expenses, which line will we report these totals on in Part 3 or is there a standard allocation with the standardized expense reporting?

[Glenn]

Currently the NAIC instructions for the SHCE are silent with respect to guidance on your question.
You could draft an inquiry to the NAIC directly. We have done the same but no response yet.

You could try a direct email to Calvin Ferguson
CFerguson@naic.org or Linda Hunsucker at the NAIC is also a good resource.

Sorry. Best I can offer at this time

Regards,
Glenn S Sackett

[Glenn]

See email from NAIC :
The NAIC does not have specific instructions for this issue. In the past, companies have only included the amount on the total line with an explanation such as ?reporting QI expenses using the .8% of premiums method instead of the full allocation method? for a crosscheck failure.

I suggest the company contact the state of domicile with specific questions as to the appropriate accounting or reporting where the instructions are silent.

We do have a guidance document about the .8% issue. https://content.naic.org/sites/default/files/inline-files/cmte_e_app_blanks_related_rep_qi_sup_health.pdf

Kristi Montanelli
NAIC Sr. Insurance Reporting Specialist
Phone: (816) 783-8408
Email: kmontanelli@naic.org

Regards,
Glenn S Sackett