In a plan timeline, run-out protection activates to cover which of these?

In a plan timeline, run-out protection activates to cover which of these?

• A. Covers claims paid after the plan year ends.
• B. Covers claims submitted mid-year.
• C. Covers only the first month of the next year.
• D. Covers enrollment fees for the next year.

Answer: (A)

Run-out protection extends the claims window beyond the plan year so that services incurred during the year can still be paid after the year ends. The key idea is that the year doesn’t abruptly end coverage for those claims—the run-out period allows processing and payment of those claims once the year is over. It’s not about enrollment fees or just the first month of the next year, and it doesn’t limit coverage to mid-year submissions. Therefore, it covers claims paid after the plan year ends.

Run-out protection extends the claims window beyond the plan year so that services incurred during the year can still be paid after the year ends. The key idea is that the year doesn’t abruptly end coverage for those claims—the run-out period allows processing and payment of those claims once the year is over. It’s not about enrollment fees or just the first month of the next year, and it doesn’t limit coverage to mid-year submissions. Therefore, it covers claims paid after the plan year ends.