Which option correctly defines run-out protection?

Which option correctly defines run-out protection?

• A. Covers deductibles for the current year.
• B. Covers enrollment fees for the current year.
• C. Covers claims paid after the plan year ends.
• D. Covers premiums for the policy year.

Answer: (C)

Run-out protection is about extending the window for paying claims beyond the end of the plan year so that services received during the coverage period can still be processed and paid after the year ends. This is why the option that covers claims paid after the plan year ends is the best fit. Other items describe things like deductibles for the current year, enrollment fees for the current year, or premiums for the policy year, which don’t address extending the claims payment window after the year ends.

Run-out protection is about extending the window for paying claims beyond the end of the plan year so that services received during the coverage period can still be processed and paid after the year ends. This is why the option that covers claims paid after the plan year ends is the best fit. Other items describe things like deductibles for the current year, enrollment fees for the current year, or premiums for the policy year, which don’t address extending the claims payment window after the year ends.