Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Health - Disability
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Reply
 
Thread Tools Display Modes
  #1  
Old 10-20-2017, 04:00 PM
Bill McKay's Avatar
Bill McKay Bill McKay is offline
Member
 
Join Date: Dec 2006
Posts: 109
Default IBNR and GAAP for self funded employers

This is not my area of expertise so I didn't know how to answer when I was asked about how a self funded employer can change their accruals (for medical claims) under GAAP and how the IBNR calculation the TPA provided conforms to GAAP.

I thought GAAP was something the employer's accountants would worry about more than the TPA. But i'm uneducated on this, apparently.
Reply With Quote
  #2  
Old 10-20-2017, 05:41 PM
JMO's Avatar
JMO JMO is offline
Carol Marler
Non-Actuary
 
Join Date: Sep 2001
Location: Back home again in Indiana
Studying for Nothing actuarial.
Posts: 36,393
Default

Quote:
Originally Posted by Bill McKay View Post
This is not my area of expertise so I didn't know how to answer when I was asked about how a self funded employer can change their accruals (for medical claims) under GAAP and how the IBNR calculation the TPA provided conforms to GAAP.

I thought GAAP was something the employer's accountants would worry about more than the TPA. But i'm uneducated on this, apparently.
The accounting people would do this by making a data entry. What was the question again?
__________________
Carol Marler, "Just My Opinion"

Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.


My latest favorite quotes, updated Oct 13, 2017.

Spoiler:
I should keep these four permanently.
Quote:
Originally Posted by rekrap View Post
JMO is right
Quote:
Originally Posted by campbell View Post
I agree with JMO.
Quote:
Originally Posted by Westley View Post
And def agree w/ JMO.
Quote:
Originally Posted by MG View Post
This. And everything else JMO wrote.
And this all purpose permanent quote:
Quote:
Originally Posted by Dr T Non-Fan View Post
Yup, it is always someone else's fault.
MORE:
Quote:
Originally Posted by Bro View Post
I recommend you get perspective.
Quote:
Originally Posted by Enough Exams Already View Post
Dude, you can't fail a personality test. It just isn't that kind of test.
Quote:
Originally Posted by Locrian View Post
I'm disappointed I don't get to do both.
Reply With Quote
  #3  
Old 10-20-2017, 07:06 PM
Dr T Non-Fan Dr T Non-Fan is offline
Member
SOA AAA
 
Join Date: Sep 2001
Location: Just outside of Nowhere
Posts: 88,073
Default

Question is probably more about how it can change the accrual without being asked about it by some auditor.
The answer is to have an actuary do it, and sign that it is an accurate estimate.
In order for him to do that, he'd usually want to make sure it was an accurate estimate.

Check GAAP guidelines for IBNR. No, it's not very helpful (I just googled quickly). Need to note any change in methodology ("The CEO says so" is not a valid methodology) and why it results in a more accurate estimate.

Assuming the TPA is providing an accurate estimate is merely passing the buck, and that should be fine for most companies. An actuary has probably done that work, and has certified the estimate.
__________________
DTNF's Basic Philosophy Regarding Posting: There's no emoticon for what I'm feeling! -- Jeff Albertson (CBG)
DTNF's Trademarked Standard Career Advice: "pass some exams and get back to us."
DTNF's Major advice: "Doesn't matter. Choose major that helps you with goal of Career Advice."
DTNF's Résumé Advice: Have a good and interesting answer to every item on it for the interviews.
DTNF's Law of Job Offers: You not only have to qualify for the position, but you also have to be the best candidate available for the offer.
DTNF's Work Philosophy: I am actuary. Please insert data. -- Actuary Actuarying Rodriguez.
Twitches' Advice to Crazy Women: Please just go buy your 30 cats already.
Reply With Quote
  #4  
Old 10-23-2017, 11:15 AM
Bill McKay's Avatar
Bill McKay Bill McKay is offline
Member
 
Join Date: Dec 2006
Posts: 109
Default

Quote:
Originally Posted by JMO View Post
The accounting people would do this by making a data entry. What was the question again?
Exactly.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 05:32 PM.


Powered by vBulletin®
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.28722 seconds with 11 queries