Managers of the new federal risk corridors program have figured out what they'll do if they run out of cash: make a partial payment during the year, and then use revenue from the next year to pay the balance.
Although the "payment stretching" solution could fix the cash-flow problem at the risk corridors program, it could create a new cash-flow accounting headache for the carriers expecting the money.
Officials at the Center for Consumer Information & Insurance Oversight talk about risk corridors program payment stretching in a new fact sheet.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.