Insurance
Medical Pre-Authorization Liability Accrual
Accruing a liability for approved hospital admissions not yet invoiced.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Claims Expense — Medical (Pre-Auth Accrual) | Expense (+) | 8,000.00 | - |
| Accrued Medical Claims (Pre-Authorization) | Liability (+) | - | 8,000.00 |
💡 Accountant's Note
When a hospital admission is pre-authorized, the insurer has a present obligation even before the invoice arrives. Accruing approved but unbilled claims improves IBNR accuracy and ensures liabilities are not understated.
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