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.
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