State insurance regulators are thinking about what health insurers ought to tell them about their interactions with the new Patient Protection and Affordable Care Act (PPACA) risk-management programs.
The Statutory Accounting Principles Working Group, part of the National Association of Insurance Commissioners (NAIC), talks about risk program disclosure rules in a new draft paper posted on the group’s section of the NAIC website.
PPACA calls for health insurers to help pay for a temporary reinsurance program, a temporary risk corridor program and a permanent risk-adjustment program.
The “3 R’s” programs are supposed to protect health insurers against any big swings in risk that occur because of PPACA.
What Your Peers Are Reading
The NAIC already has a collection of guidance, Statement of Statutory Accounting Principles Number 35R, that helps insurers report on participation in existing state and federal risk-management programs in their financial statement.
At the end of the new draft paper, the statutory accounting working group shows proposed 3 R’s disclosure guidelines.