Health insurers might have to put standardized, detailed information about their relationship with a troubled federal risk management program, the risk corridors program, in their financial reports for the first quarter of 2016.
A body that helps set accounting rules for U.S. insurers, the Statutory Accounting Principles Working Group, is rushing to get new risk corridors program reporting requirements in place as quickly as possible.
The working group, part of the Financial Condition Committee at the National Association of Insurance Commissioners (NAIC), is putting a draft of the new reporting requirements, Statement of Statutory Accounting Principles (SSAP) Number 107, through a shortened version of the usual public comment process. Comments on the draft are due Jan. 15.
The draft would require insurers to show how much cash they have actually gotten from or paid into the risk corridors program; how much they think they should be getting from or paying into the program; and any risk corridors program amounts they have kept out of their financial reports because of collectability concerns or other concerns.
Regulators say problems with understanding the risk corridors program have caused headaches for some established insurers, and contributed to a wave of failures at small health insurers, pushing what once looked like attractive individual coverage options out of the market.