What is run-out protection?

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Multiple Choice

What is run-out protection?

Run-out protection is the extension of the claims payment window after a plan year ends, so that claims incurred during that year but paid after year‑end can still be processed and paid. This safeguards participants from losing coverage for services received within the year simply because the claim was submitted late. Plans often set a run-out period (a number of months) for late submissions and payments. It isn’t about every claim submitted during the year, nor about initial-year claims or administrative costs for later years.

Run-out protection is the extension of the claims payment window after a plan year ends, so that claims incurred during that year but paid after year‑end can still be processed and paid. This safeguards participants from losing coverage for services received within the year simply because the claim was submitted late. Plans often set a run-out period (a number of months) for late submissions and payments. It isn’t about every claim submitted during the year, nor about initial-year claims or administrative costs for later years.

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