Run-out protection extends to claims paid after what event?

Run-out protection extends to claims paid after what event?

• A. The plan year ends.
• B. The plan year starts.
• C. The plan year is extended.
• D. The policy terminates.

Answer: (A)

Run-out protection is about paying claims for services that were incurred during a plan year after that year has ended. The post-year window used to process and pay those claims is triggered when the plan year ends. It doesn’t extend to the plan year starting, having the year extended, or continuing after policy termination. In practice, once the plan year closes, a defined run-out period allows claims from that year to be paid, ensuring benefits aren’t lost simply because billing occurred a bit later.

Run-out protection is about paying claims for services that were incurred during a plan year after that year has ended. The post-year window used to process and pay those claims is triggered when the plan year ends. It doesn’t extend to the plan year starting, having the year extended, or continuing after policy termination. In practice, once the plan year closes, a defined run-out period allows claims from that year to be paid, ensuring benefits aren’t lost simply because billing occurred a bit later.