Quick Question about Incurred Days and Paid Days.

[My Dogs Are Barking!]

How are the number of incurred days and paid days in a given month normally calculated? Or what would be a short definition of what an incurred day is or what a paid day is?

[Surfohio]

In general, the idea is that not as many claims will be incurred on weekend days, and therefore a 31 day month with 5 Fridays, Saturdays, and Sundays should have fewer claims incurred than a 31 day month with 4 weekends and 5 Mondays, Tuesdays, and Wednesdays.

Likewise, not as many claims will be paid either.

[DudeMan]

Incurred Days is simply the number of days within the calendar month.

Paid Days is a little more subjective to your company's accounting systems and is considered a fiscal month. Let's say for example that accounting cuts off the fiscal month the last Saturday of the month (last full week). The number of paid days in a given month is the number of days between the last Saturday of last month and the last Saturday of the current month.

May 2009, for example, would have 31 incurred days and 35 paid days.

[Dr T Non-Fan]

Different types of claims (InP/OutP/Prof/Rx) will have different patterns of incurred by day-of-week.
It's up to you to determine the factors of each.

Holidays are also an issue.

In short, if your company has some official schedule of incurred days and paid days for each month, then someone in your company approved them, and that person would know better than we do.