tailieunhanh - COMMUNITY HEALTH PLAN JUNE 30, 2001 AND 2000

Tham khảo tài liệu 'community health plan june 30, 2001 and 2000', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | COMMUNITY HEALTH PLAN JUNE 30 2001 AND 2000 TABLE OF CONTENTS Page Independent Auditor s Report. 1 Balance Sheets. 2 Statements of Income and Changes in Fund Balance. 3 Statements of Cash Flows. 4 Notes to Financial Statements. 5 This is trial version NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued Premiums and Medical Care Expenses - CHP s premium revenues are primarily capitation payments received for plan enrollees on a per member per month basis. Premiums are recognized as revenue in the month in which the members are entitled to service. CHP contracts with various County and private hospitals and clinics to provide health care services to its members. The cost of medical care includes capitation payments to contracted hospitals and clinics inplan health care providers provisions for claims from other hospitals and clinics for out-of-area services out-of-area out-of-plan health care providers provisions for tertiary care and pharmaceutical supplies as well as an estimate of out-of-plan services which have been incurred but not yet reported. Cost of capitation payments are recognized in the period enrollees are eligible for service. Provisions for out-of-area out-of-plan claims tertiary care and pharmaceutical supplies are based on a percentage of premium revenue. The appropriate medical care expenditure accounts and the health care risk pool liability account are increased in the period the capitation payments are recognized. As claims for out-of-area out-of-plan medical services tertiary care and pharmaceutical supplies are received and the payable amounts determined the payable amounts are reclassified from the health care risk pool account to accounts payable. If actual claims exceed the liability for the provisions the appropriate medical care expense accounts are then charged. The estimate of out-of-plan services which have been incurred but not yet reported is based on historical studies of claims received. Claims Processed