What is the meaning of outstanding claim and incured but not reported?
Answer:
Outstanding claim means these are claims that have not been either paid or denied at the time the report ran.
Incurred But Not reported (IBNR) - this report is an estimation of current months expenditures based upon outstanding authorization data and existing claims payment data. Meaning it is primarily based on existing procedure code values and claims payment data within the system from previous months. IBNR is not a accurate report
The claim occurs today, but . . . the claim is not filed right away. This figure is probably a consistent percentage of the insurer's total liabilities. Think of it this way, there were claims from hurricane Katrina but it took a while for the claims to actually be submitted.
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