# ASC 720-954: Other Expenses — Health Care Entities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/720/954/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:12:28.117Z to 2026-09-10T01:12:54.691Z Record version: sha256:40a5dc518066bebdc691ba09e75bf971428eb623ab7de6fa47b7f56d40727256 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-954: Other Expenses — Health Care Entities ### Machine-generated study aids ```json { "summary": "ASC 720-954 governs how health care entities account for insurance-related and other operating expenses, principally retrospectively rated insurance policies, claims-made policies, malpractice loss accruals, multiprovider captive insurance arrangements, and stop-loss insurance. The core rules turn on whose loss experience drives the premium: if the entity's own experience, the minimum premium is expensed over the coverage period and recoveries are deferred until estimated losses exceed the stipulated maximum premium; if a group's experience, additional premiums or refunds are accrued based on group experience to date, including asserted and unasserted, reported and unreported claims.", "key_points": [ "Under a retrospectively rated policy whose ultimate premium depends primarily on the entity's own loss experience, the minimum premium is expensed over the coverage period and insurance recoveries are not recognized until estimated losses exceed the stipulated maximum premium (720-954-25-1).", "Under a retrospectively rated policy based primarily on a group of health care entities' experience, additional premiums or refunds are accrued on the group's experience to date, including the ultimate cost of asserted and unasserted claims, reported or unreported (720-954-25-2), and the initial premium is amortized pro rata over the policy term (720-954-35-1).", "Malpractice loss accruals are based on estimated ultimate losses and the costs of settling claims, using the factors in 954-450-25-2 through 25-2A (720-954-25-3).", "A health care entity insured under a claims-made policy applies the Claims Made Contract Subsections of Subtopic 720-20 and still recognizes the estimated cost of incurred but not reported claims and incidents when probable and reasonably estimable (720-954-25-4A).", "An entity insured by an unconsolidated multiprovider captive under a group-experience retrospectively rated policy follows 954-720-25-2 but must assess whether the captive has sufficient economic substance to relieve it of further liability (720-954-35-2).", "Stop-loss insurance premiums are included in reported health care costs and stop-loss recoveries are reported as reductions of related health care costs (720-954-45-1).", "Required disclosures include the existence and accrual basis of retrospectively rated policies, insurance through a multiprovider captive with the ownership percentage and accounting method for the investment, and the nature, amounts, and effects of significant stop-loss contracts (720-954-50-1 through 50-4)." ], "categories": [ "Recognition", "Subsequent measurement", "Disclosure", "Industry-specific" ], "audience_level": "intermediate", "student_note": "The exam trap is symmetry: recoveries under an own-experience retrospectively rated policy are deferred until estimated losses exceed the stipulated maximum premium, whereas group-experience policies require accruing premiums or refunds currently based on group experience. Students also forget that buying a claims-made policy does not eliminate the need to accrue IBNR losses.", "related_topics": [ "954-450", "720-20", "954-10", "944-20", "954-720" ], "key_concepts": [ "retrospectively rated insurance policy", "stop-loss insurance", "multiprovider captive insurance entity", "claims-made policy", "incurred but not reported claims", "malpractice loss accrual", "acquisition costs", "common trust fund" ] } ``` Source downloaded (UTC): 2026-09-10T01:12:28.117Z to 2026-09-10T01:12:28.117Z Record version: sha256:05f963ebba0df59060b2c55066f361dbda0bad0fde28ea136210a1adda064df8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/720/954/#00-status) SEC content: no ##### [720-954-00-1](https://asc.understandingaccounting.org/asc/720/954/#720-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:28.117Z to 2026-09-10T01:12:28.117Z Record version: sha256:5293eb9364908a4823c10027bd381cf62f0f66c5c527af652732c86ae7c10fd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Prepaid Health Care ServicesSupersededAccounting Standards Update No. 2014-0905/28/2014
Stop-Loss InsuranceAddedAccounting Standards Update No. 2014-0603/14/2014
954-720-05-3AmendedAccounting Standards Update No. 2014-0603/14/2014
954-720-25-1AmendedAccounting Standards Update No. 2010-2408/27/2010
954-720-25-5AmendedAccounting Standards Update No. 2010-2408/27/2010
954-720-25-6SupersededAccounting Standards Update No. 2014-0905/28/2014
954-720-25-7SupersededAccounting Standards Update No. 2014-0905/28/2014
954-720-30-1 through 30-3SupersededAccounting Standards Update No. 2010-2408/27/2010
954-720-35-3SupersededAccounting Standards Update No. 2010-2408/27/2010
954-720-45-1AmendedAccounting Standards Update No. 2014-0603/14/2014
954-720-50-1AmendedAccounting Standards Update No. 2012-0410/01/2012
954-720-50-4AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T01:12:29.956Z to 2026-09-10T01:12:29.956Z Record version: sha256:02fa26921c4f49516119fe79e61cc07835c45c2460658fe0928da20264da84e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/720/954/#05-overview-and-background) SEC content: no ##### [720-954-05-1](https://asc.understandingaccounting.org/asc/720/954/#720-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:29.956Z to 2026-09-10T01:12:29.956Z Record version: sha256:d03f1c5b9d05332e6ecb2cb47d9953cec2994b80bd0b0816fc947e7989b69547 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on accounting for other expenses for health care entities within the scope of this Topic. #### Prepaid Health Care Services ##### [720-954-05-2](https://asc.understandingaccounting.org/asc/720/954/#720-954-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:29.956Z to 2026-09-10T01:12:29.956Z Record version: sha256:ad10a029f4ca6e7d0df9c5e7173327eaa2a45aed49c8f884cf08eb8c1ba34e0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Many prepaid health care providers incur costs that vary with, and are primarily related to, the marketing of subscriber contracts and member enrollment. These costs, sometimes referred to as acquisition costs, consist mainly of commissions paid to agents or brokers and incentive compensation based on new enrollments. Commissions and incentive compensation may be paid when the contracts are written, at later dates, or over the terms of the contracts as premiums are received. Some providers incur additional costs directly related to the acquisition of specific contracts, such as the costs of specialized brochures, marketing, and advertising. Providers also incur costs that are related to the acquisition of new members but that do not relate to specific contracts and are not considered acquisition costs. These costs include salaries of the marketing director and staff, general marketing brochures, and general advertising and promotion expenses. #### Stop-Loss Insurance ##### [720-954-05-3](https://asc.understandingaccounting.org/asc/720/954/#720-954-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:29.956Z to 2026-09-10T01:12:29.956Z Record version: sha256:8708365a79c98a39edf2ef3860968d7ee4d7ad3edc7bf435a8bdf51eb865a6a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In [stop-loss insurance](https://asc.understandingaccounting.org/glossary/s/#stop-loss-insurance "A contract in which an entity agrees to indemnify providers for certain health care costs incurred by members."), prepaid health care providers or associated entities transfer portions of their financial risks to other entities. A provider typically contracts to recover health care costs in excess of stated amounts during the contract periods. Source downloaded (UTC): 2026-09-10T01:12:33.730Z to 2026-09-10T01:12:33.730Z Record version: sha256:87e8f861cf013f26258f853a0dc0b99da92b4f249fc807a6c02c43e9aa17cf5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/720/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [720-954-15-1](https://asc.understandingaccounting.org/asc/720/954/#720-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:33.730Z to 2026-09-10T01:12:33.730Z Record version: sha256:77fa22b7060cf666fd1fe3ecd3c9353c89a60ec21de5f3b06f2bb3d64a9c09d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 954-10-15. Source downloaded (UTC): 2026-09-10T01:12:40.353Z to 2026-09-10T01:12:40.353Z Record version: sha256:4c291e0032ac79f5866d4931960cf5fd914596f7ffce64a5b5e4b42d77073de1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-954-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/720/954/#25-recognition) SEC content: no #### Retrospectively Rated Premiums ##### [720-954-25-1](https://asc.understandingaccounting.org/asc/720/954/#720-954-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:40.353Z to 2026-09-10T01:12:40.353Z Record version: sha256:c27f2ab352cf2d56696f9d932ecaf894302f545fad0242bc174b6e7e3d61c52e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A health care entity with a retrospectively rated insurance policy whose ultimate premium is based primarily on the health care entity's loss experience shall account for the minimum premium as an expense over the period of coverage under the policy. Insurance recoveries from a retrospectively rated insurance policy whose ultimate premium is based primarily on the health care entity's loss experience shall not be recognized until the estimated losses exceed the stipulated maximum premium. ##### [720-954-25-2](https://asc.understandingaccounting.org/asc/720/954/#720-954-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:40.353Z to 2026-09-10T01:12:40.353Z Record version: sha256:edffbbd6db5071a4d60931362faa5caacabab275eabf8f9bea01797096378dd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A health care entity insured under a retrospectively rated policy whose ultimate premium is based primarily on the experience of a group of health care entities shall accrue additional premiums or refunds on the basis of the group's experience to date, which includes a provision for the ultimate cost of asserted and unasserted claims before the financial statement date, whether reported or unreported. #### Malpractice Losses ##### [720-954-25-3](https://asc.understandingaccounting.org/asc/720/954/#720-954-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:40.353Z to 2026-09-10T01:12:40.353Z Record version: sha256:d425dabb10f8eb8d25035d600a4523f3c8c258daad8a7efc00a11143740b7060 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An accrual for malpractice losses shall be based on estimated ultimate losses and costs associated with settling claims. See paragraphs [954-450-25-2 through 2A](https://asc.understandingaccounting.org/asc/450/954/#450-954-25-2) for factors to consider when determining the amount of the accrual. ##### [720-954-25-4](https://asc.understandingaccounting.org/asc/720/954/#720-954-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:40.353Z to 2026-09-10T01:12:40.353Z Record version: sha256:441b46ded55c52a4a71a17a65a60637d25f9657b182d949650ec38f5752cdfc3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### Claims-Made Insurance Policies ##### [720-954-25-4A](https://asc.understandingaccounting.org/asc/720/954/#720-954-25-4A) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:40.353Z to 2026-09-10T01:12:40.353Z Record version: sha256:68154c5e5337834a0f79e2a8267d647e845f0992db7d425f17790065faa689b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Claims Made Contract Subsections of Subtopic 720-20 apply if a health care entity purchases a claims-made insurance policy. As discussed in paragraph [720-20-25-14](https://asc.understandingaccounting.org/asc/720/20/#720-20-25-14), insured entities (except as discussed in Section 944-20-15), including those that use a claims-made approach for insuring certain risks, recognize a liability for the probable losses from incurred but not reported claims and incidents if the loss is both probable and reasonably estimable. Consequently, a health care entity that is insured under a claims-made insurance policy recognizes the estimated cost of claims and incidents not reported to the insurance carrier, in accordance with Subtopic 954-450. #### Trust Funds ##### [720-954-25-5](https://asc.understandingaccounting.org/asc/720/954/#720-954-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:40.353Z to 2026-09-10T01:12:40.353Z Record version: sha256:f76f1ea8dcfcb5a5424f36ba2803584d28542f2941b386572570df43148dce29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that participates in a common trust fund and forfeits its rights to any excess funding shall expense its contributions and account for its participation in the trust fund based on the type of coverage obtained (for example, occurrence basis, claims-made, or retrospectively rated). ##### [720-954-25-6](https://asc.understandingaccounting.org/asc/720/954/#720-954-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:40.353Z to 2026-09-10T01:12:40.353Z Record version: sha256:c15d18e22c53e2ed7f5ef2213b18e811b30b4c3bc2f8474c81f5f819ea8e5603 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [720-954-25-7](https://asc.understandingaccounting.org/asc/720/954/#720-954-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:40.353Z to 2026-09-10T01:12:40.353Z Record version: sha256:f073161a5933be7b0e3b6e4159361699910a65e4d924158939bb02dbc333c7ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-10T01:12:42.679Z to 2026-09-10T01:12:42.679Z Record version: sha256:f02833ccb23de471c1e420088849966ae4976c7e6722f2efa3d572ddbc6d6a61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-954-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/720/954/#30-initial-measurement) SEC content: no ##### [720-954-30-1](https://asc.understandingaccounting.org/asc/720/954/#720-954-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:42.679Z to 2026-09-10T01:12:42.679Z Record version: sha256:83b600b7de894c4de10c300d1b45a2ffd91c396c0a1123d9d0d3b6fc424a7b9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 954-720-30-1 through 30-3 superseded by Accounting Standards Update No. 2010-24](https://asc.understandingaccounting.org/asc/720/954/#720-954-30-1). Source downloaded (UTC): 2026-09-10T01:12:46.424Z to 2026-09-10T01:12:46.424Z Record version: sha256:ed078edc9164c9489a2cdce4a01766d1d3c770009902572cd13c8bd801a17ce7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-954-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/720/954/#35-subsequent-measurement) SEC content: no #### Retrospectively Rated Premiums ##### [720-954-35-1](https://asc.understandingaccounting.org/asc/720/954/#720-954-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:46.424Z to 2026-09-10T01:12:46.424Z Record version: sha256:7e197472ad6adb93cb7f0cb930b3b5a612be72c961775726e3783ac2245f39cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A health care entity insured under a retrospectively rated policy whose ultimate premium is based primarily on the experience of a group of health care entities amortizes the initial premium to expense on a pro rata basis over the policy term. #### Medical Malpractice Claims Insured by Captive Insurance Entities ##### [720-954-35-2](https://asc.understandingaccounting.org/asc/720/954/#720-954-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:46.424Z to 2026-09-10T01:12:46.424Z Record version: sha256:9968caedb1518c95dc78ce32dc763f988baced82a0e3efa9f4d1d830f4e76dfa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A health care entity insured by an unconsolidated multiprovider captive insurance entity for medical malpractice claims under a retrospectively rated policy based primarily on the experience of a group of health care entities shall account for such insurance as indicated in paragraph [954-720-25-2](https://asc.understandingaccounting.org/asc/720/954/#720-954-25-2). However, the health care entity shall consider whether the economic substance of the multiprovider captive insurance entity is sufficient to relieve the health care entity from further liability. ##### [720-954-35-3](https://asc.understandingaccounting.org/asc/720/954/#720-954-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:46.424Z to 2026-09-10T01:12:46.424Z Record version: sha256:07c37ffdf2df25fa962985c75d4855a9b6ace9013c857ffdae9288b32ed95e9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-24](https://asc.understandingaccounting.org/updates/asu-2010-24/). Source downloaded (UTC): 2026-09-10T01:12:50.085Z to 2026-09-10T01:12:50.085Z Record version: sha256:6c214e19a7958d2de55c7c0a65f4d3a0bebfd3100ca663d92436dcd30b9d415a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/720/954/#45-other-presentation-matters) SEC content: no #### Prepaid Health Care Services—Stop-Loss Insurance ##### [720-954-45-1](https://asc.understandingaccounting.org/asc/720/954/#720-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:50.085Z to 2026-09-10T01:12:50.085Z Record version: sha256:4222f971e2b123fcb2c9271cd24b25db98ffea15ee0ee6178a02c7d0c15606cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Stop-loss insurance](https://asc.understandingaccounting.org/glossary/s/#stop-loss-insurance "A contract in which an entity agrees to indemnify providers for certain health care costs incurred by members.") premiums shall be included in reported health care costs. Stop-loss insurance recoveries shall be reported as reductions of related health care costs. Source downloaded (UTC): 2026-09-10T01:12:51.764Z to 2026-09-10T01:12:51.764Z Record version: sha256:f5aa319207987c895f335c738a5dfa904393d5c5e7a155e7553dc2e55de28e75 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-954-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/720/954/#50-disclosure) SEC content: no #### Retrospectively Rated Premiums ##### [720-954-50-1](https://asc.understandingaccounting.org/asc/720/954/#720-954-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:51.764Z to 2026-09-10T01:12:51.764Z Record version: sha256:e7e07eca128363916a18025e499f149a522fc787da4fae6fbd749e66ae3a4cc3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A health care entity insured under a retrospectively rated policy whose ultimate premium is based primarily on the experience of a group of health care entities shall disclose both of the following: 1. a It is insured under a retrospectively rated policy. 2. b Premiums are accrued based on the ultimate cost of the experience to date of a group of entities. #### Medical Malpractice Claims Insured by Captive Insurance Entities ##### [720-954-50-2](https://asc.understandingaccounting.org/asc/720/954/#720-954-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:51.764Z to 2026-09-10T01:12:51.764Z Record version: sha256:0a95de6ff80c7891427208b6b6877342c227beed702aea5000fd68e623785928 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The health care entity shall disclose both of the following: 1. a It is insured under a retrospectively rated policy of a multiprovider captive insurance entity. 2. b The premiums are accrued based on the captive insurance entity's experience to date. ##### [720-954-50-3](https://asc.understandingaccounting.org/asc/720/954/#720-954-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:51.764Z to 2026-09-10T01:12:51.764Z Record version: sha256:a25615ccc1db63b349d863ff11bd4b6ff390f109a0a0f7ffd9d1de1505846dff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A health care entity that is insured by a multiprovider captive insurance entity shall disclose in its financial statements: 1. a That it is insured by such an entity 2. b Its ownership percentage in the captive entity 3. c The method of accounting for its investment in, and the operations of, the captive entity. #### Prepaid Health Care Services—Stop-Loss Insurance ##### [720-954-50-4](https://asc.understandingaccounting.org/asc/720/954/#720-954-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:12:51.764Z to 2026-09-10T01:12:51.764Z Record version: sha256:3cb620b2315c4d6595a1a14394ae5b0ba252fe2985b129558d0b390129d5c3da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The nature, amounts, and effects of significant [stop-loss insurance](https://asc.understandingaccounting.org/glossary/s/#stop-loss-insurance "A contract in which an entity agrees to indemnify providers for certain health care costs incurred by members.") contracts shall be disclosed.