1. Medicare term that means the addition of new enrollees to a health plan. 2. In managed care plans, this is an enrollment term. 3. In accounting, this term means accrue.
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The process of adding new members to a health insurance policy.
Insurance Encyclopedia
Accrual
Funds set aside for a benefit plan’s expenses by estimating data of the claims system and the plan’s prior history.
Accrual accounting
Accounting method that requires business organizations to report income in the period earned and to deduct expenses in the period incurred.
Accrual Basis
Means the revenues are recorded in the period earned (regardless of when collected) and expenses are recorded in the period incurred (regardless of when cash was paid out).
Accrual rate
The rate (e.g. 1/60th) at which the pension benefit increases for each year of pensionable service in a defined benefit scheme. See ACCELERATED ACCRUAL.
Accruals concept
A pensions term referring to the accounting practice whereby revenues and costs are recognised as they are earned or incurred, rather than when money is received or paid out.
Accrue
1. When a right is vested in a person, that right is said to accrue (to go) to the benefit of that person. 2. To report a transaction in the time period to which its effect relates.
Accrued benefits
Accumulated benefits in a pension scheme for a member in respect of his service up to a given time, whether vested or not. The calculation may take account of the member’s current or projected earnings. Allowance may also be made for revaluation and/or pension increases.
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US, MEDICAL: Amount of benefit in a pension plan that has accumulated on behalf of an individual plan participant at any particular time.
Accrued benefits funding methods
Major category of funding methods in which the actuarial liability for active members is based on pensionable service accrued up to the valuation date or to the end of the control period, as appropriate. The treatment of benefits not directly linked to pensionable service is not specified but left to actuarial judgement, subject to the need for consistency between successive valuations. The standard contribution rate is derived from the definition of the actuarial liability appropriate to the accrued benefits funding method selected. It is the rate sufficient, after taking into account the actuarial liability at the beginning of the control period, and the benefits expected to be paid during that period, to provide for the actuarial liability at the end of the control period.
Accrued income
Earnings on a stated sum of money that continues to increase until the money is paid out.