Are medical-only claims included in the Annual Report?

• A. No
• B. No, unless there are probable future medical payments
• C. Yes
• D. Yes, but only for the reporting year of the annual report

Answer: (D)

The correct choice states that medical-only claims are included in the Annual Report, but only for the reporting year of the annual report. This is significant because Annual Reports are meant to provide a snapshot of a company's claims experience during a specific period, allowing stakeholders to assess the financial implications of those claims.

Including medical-only claims acknowledges that even though these claims do not involve lost wages or other compensatory factors, they still represent a cost to the organization. This practice provides a comprehensive view of all claims and helps in understanding the overall impact on the organization's self-insurance strategy.

Additionally, excluding medical-only claims could lead to an underrepresentation of the total claims burden an organization faces, as these claims can still accumulate costs over time. By focusing on the reporting year, the choice ensures that the information presented is relevant and reflects recent claims activity, thus affording stakeholders the understanding they need to evaluate the organization's current financial commitments.