New Actuaries' Report: Financial Reporting Implications Under the Affordable Care Act

The American Academy of Actuaries has released a new White Paper on the Financial Reporting Implications Under the Affordable Care Act. The paper was developed to provide information to companies on how various reporting provisions in the Affordable Care Act (ACA) may create volatility with regard to future financial statements.

The paper addresses the following topics:

• The impact of the ACA’s premium stabilization programs (risk adjustment, reinsurance, and risk corridors) on financial statements;

• The effect of new taxes and fees established by the ACA, with an emphasis on the Health Insurance Providers Fee and the per-capita reinsurance contributions used to procure funding for the transitional reinsurance program;

• The possible issues related to the new ACA programs in which the government makes advanced payments to issuers that may require subsequent adjustment; and

• The potential ways in which the 2014 market reforms may affect the existing categories of actuarial estimates found on issuers’ balance sheets.