Describe the "run-off" period please

ollielooya

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Just exactly what is meant by the term "run off or run-down" period when one insurance company has been absorbed, bought or going out of business and how this may affect the normal workflow whether it be the insurance company itself, or that of the billing company.
 

pamsbill

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I am honestly guessing here but my guess is it is the length of time claims will be accepted for adjudication before you are told "too late".

Another thought is in the case of a self-funded deal they may pay claims until they run out of money. Any way you think about it though it doesn't sound too promising.

Get all your claims in and work the A/R constantly and aggressively until it is cleared up because there will come a time when you will get your mail returned and no one will answer the ringing phone.

PJM
 

cmranvik

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There can be a "run out" period for claims when a group changes insurance companies. For example, a self-funded group may move from insurance company A to insurance company B on 1/1/12. The group may contract with insurance company A to continue to process claims incurred before 1/1/12 for six months (through 5/31/12). If you miss the deadline, you can still submit a claim incurred before 1/1/12 to insurance company B, but it gets complicated.
 
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