Proposed statement of position : accounting by prepaid health care plans;Accounting by prepaid health care plans; Exposure draft (American Institute of Certified Public Accountants), 1986, Oct. 6

Authors

American Institute of Certified Public Accountants. Health Maintenance Organizations Task Force

Files

Description

This proposed statement of position provides guidance on applying generally accepted accounting principles in accounting for health care costs, contract losses, reinsurance, and acquisition costs of prepaid health care plans. Prepaid health care plans should accrue health care costs as services are rendered, including estimates of costs incurred but not yet reported to the plan. When expected future health care costs and maintenance expenses under a group of existing contracts will probably exceed anticipated future premiums and reinsurance recoveries on those contracts, a loss should be recognized. Reinsurance premiums should be reported as a health care cost. Acquisition costs of prepaid health care plans should be expensed as incurred.

Publication Date

1986

Relational Format

Book

Keywords

Health maintenance organizations -- Accounting

Disciplines

Accounting | Taxation

Comments

Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Recommended Citation

American Institute of Certified Public Accountants. Health Maintenance Organizations Task Force, "Proposed statement of position : accounting by prepaid health care plans;Accounting by prepaid health care plans; Exposure draft (American Institute of Certified Public Accountants), 1986, Oct. 6" (1986). Exposure Drafts, Comment Letters, and Statements of Position. 495.
https://egrove.olemiss.edu/aicpa_sop/495