In terms of plan timing, run-out protection covers which of these?

In terms of plan timing, run-out protection covers which of these?

• A. Covers claims paid during the plan year.
• B. Covers claims paid after the plan year ends.
• C. Covers only the first year’s claims.
• D. Covers fees for open enrollment.

Answer: (B)

Run-out protection is about timing after the plan year ends. It ensures that claims incurred during the plan year can still be submitted and paid even after the year has closed, within the run-out period defined by the plan. This protects employees from losing benefits due to timing gaps or delays in filing or billing as the year ends. It does not apply to claims paid during the plan year, it isn’t limited to only the first year’s claims, and it isn’t related to open enrollment fees.

Run-out protection is about timing after the plan year ends. It ensures that claims incurred during the plan year can still be submitted and paid even after the year has closed, within the run-out period defined by the plan. This protects employees from losing benefits due to timing gaps or delays in filing or billing as the year ends. It does not apply to claims paid during the plan year, it isn’t limited to only the first year’s claims, and it isn’t related to open enrollment fees.