Thoughtful workforce transitions in higher education
One way higher education institutions are responding to financial challenges caused by the COVID-19 pandemic is to rethink their staffing models and reduce faculty and staff costs.
What every insurer needs to know—and do—in 2014
As insurers begin to implement the Affordable Care Act (ACA), they are quickly encountering a range of questions regarding the proper way to report new and existing receivables, liabilities, and reserves on their 2014 financial statements. Because of new premium stabilization programs, subsidies, and fees, insurance company CFOs—and their accountants and actuaries—will soon be engaged in a complicated process of estimating unknown future calculations, updating these estimates when additional data are available, closing out these accruals when funds get transferred, and ensuring that the results are reflected in the proper time period. Furthermore, these financial entries will potentially be subject to review from a number of external stakeholders such as the U.S. Department of Health and Human Services (HHS), auditors, credit rating agencies, and state insurance departments.
There are approximately two dozen new issues that must be mastered. This overview focuses on those that are likely to have the greatest financial impact. Based on our expertise in insurance plan accounting, my colleagues and I have compiled an overview of the new risk programs, subsidies, and fees—with recommendations for both planning accruals and accounting for them on financial statements.
Despite the complexity of ACA , insurers have to continue serving their customers with compliant products. They also need to keep their businesses running. This means creating new models for managing cash flows, maintaining adequate reserves, and filing financial statements. Also, it’s important to recognize that each health plan will be impacted differently, based on state-by-state regulations, and demographic and market issues within each state. The health of each company’s balance sheet depends on its ability to get all of these moving parts right as quickly as possible.