Which of the following statements about run-out protection is true?

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Multiple Choice

Which of the following statements about run-out protection is true?

Run-out protection is about the window after the plan year ends during which claims incurred while the plan was active can still be paid. The statement that it covers claims paid after the plan year ends is the best description because it directly addresses how timing of payment, not the timing of service or the type of service, is handled. It protects you from having a claim denied simply because the processing or submission spills into the next year. Claims paid during the plan year are already within the normal processing period, not the post-year run-out window. Run-out protection isn’t about preventing only certain services, and it doesn’t relate to administrative costs in the following year.

Run-out protection is about the window after the plan year ends during which claims incurred while the plan was active can still be paid. The statement that it covers claims paid after the plan year ends is the best description because it directly addresses how timing of payment, not the timing of service or the type of service, is handled. It protects you from having a claim denied simply because the processing or submission spills into the next year.

Claims paid during the plan year are already within the normal processing period, not the post-year run-out window. Run-out protection isn’t about preventing only certain services, and it doesn’t relate to administrative costs in the following year.

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