For inpatient acute care hospital stays that span more than one day, when are the costs associated with the stay, incurred?
The ERRP regulation defines “incurred” as “the point in time when the sponsor, health insurance issuer (as defined in 45 CFR 160.103), employment-based plan, plan participant, or a combination of these or similar stakeholders, become responsible for payment of the claim.” 45 C.F.R. § 149.2. We interpret this regulatory definition to mean, with respect to the costs associated with an inpatient acute care hospital stay, the date of admission. Thus, a plan sponsor must submit such costs in the Summary Cost Data and Detailed Claims Data for the plan year in which they are incurred. For example, if a plan year is a calendar year and an early retiree was admitted for an inpatient acute care hospital stay on December 31, 2010, and remained hospitalized through January 15, 2011, all the costs are incurred on December 31, 2010 (i.e. in the plan sponsor’s 2010 plan year), for purposes of ERRP. If an early retiree was admitted to an acute care hospital on May 31, 2010, and remained an inpatient t
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