Financial Reporting Implications Under the ACA

Health actuaries: What you need to know about changes to financial reporting as a result of the Affordable Care Act
Aug. 22, 2013
Noon-1:00 p.m. Eastern

Reforms introduced by the Affordable Care Act (ACA) may create uncertainty for health insurance issuers. What does this uncertainty mean for your future financial statements, especially given increased ACA requirements for actuarial estimates in financial reporting?
The Academy held an informative webinar on the financial reporting implications of several key provisions of the ACA—premium stabilization programs, new taxes and fees, advanced payments, and existing actuarial liabilities.

Panelists from the Academy’s Health Practice Financial Reporting Committee discussed these provisions, recently covered in the white paper, “Financial Reporting Implications Under the Affordable Care Act.”
Topics included:
  • Impact of the ACA’s premium stabilization programs, which are referred to as the 3Rs—risk adjustment, temporary reinsurance, and temporary risk corridors.
  • Impact of new taxes and fees established by the ACA, with an emphasis on the Health Insurance Providers Fee (HIP fee) and the per-capita reinsurance contributions used to procure funding for the transitional reinsurance program.
  • Issues relating to new ACA programs for which the government makes advance payments to issuers that may require subsequent adjustment: premium subsidies and cost-sharing reductions.
  • Ways in which the 2014 market reforms may affect the existing categories of actuarial estimates found on an issuer’s balance sheet, including unpaid claim liabilities, contract reserves, due and unpaid premium assets, and premium deficiency reserves.


Laurel Kastrup, MAAA, FSA
  • Chairperson, Health Practice Financial Reporting Committee
Darrell Knapp, MAAA, FSA
  • Member, Health Practice Financial Reporting Committee


Registration was free.


The American Academy of Actuaries believes in good faith that your attendance at this live webinar, “Financial Reporting Implications under the ACA: What You Need to Know,” may constitute an organized activity as defined under the current Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States depending on your area of practice. Under these Qualification Standards, an hour of continuing education is defined as 50 minutes, and fractions of an hour may be counted.