Note 28 Health Care Receivable

[Stat-Mutual]

Our Company wrote-off health care receivables in quarter 2 of 2020 related to prior year and current year. How do these write-offs flow through the Pharmaceutical Rebate Receivable table reported in Note 28? Our Company is currently reporting Note 28 on the quarter even though it isn't required. Our initial thought is that they would go in column 3, Pharmacy Rebates as Billed or Otherwise Confirmed.

[Glenn]

Hello,
Please refer to SSAP 84 and the NAIC instructions for Note 28A.

Instruction:

A. In accordance with SSAP No. 84?Health Care and Government Insured Plan Receivables, the financial statement shall disclose the method used by the reporting entity to estimate pharmaceutical rebate receivables. For the most recent three years and for each quarter therein, the reporting entity shall disclose the following:

Estimated balance of pharmacy rebate receivable as reported on the financial statements;
Pharmacy rebates as billed or otherwise confirmed; and
Pharmacy rebates received.

Illustration:

THIS EXACT FORMAT MUST BE USED IN THE PREPARATION OF THIS NOTE FOR THE TABLE BELOW. REPORTING ENTITIES ARE NOT PRECLUDED FROM PROVIDING CLARIFYING DISCLOSURE BEFORE OR AFTER THIS ILLUSTRATION.

A. Pharmaceutical Rebate Receivables


Columns Left to right
Quarter
Estimated Pharmacy Rebates as Reported on Financial Statements
Pharmacy Rebates as Billed or Otherwise Confirmed
Actual Rebates Received Within 90 Days of Billing
Actual Rebates Received Within 91 to 180 Days of Billing
Actual Rebates Received More Than 180 Days After Billing

12/31/2020 $150 $ 147
9/30/2020 130 133 $ 62
6/30/2020 142 143 70 $ 55
3/31/2020 157 152 65 42 $ 20

12/31/2019 125 132 70 27 20
9/30/2019 123 129 62 31 14
6/30/2019 112 120 54 20 16
3/31/2019 110 118 57 39 20

12/31/2018 68 75 34 20 10
9/30/2018 60 59 27 17 10
6/30/2018 57 60 31 15 10
3/31/2018 45 50 25 18 7

I would concur with column 3 given your facts provided.

Regards,
Glenn