Reassessment Processing for a Liability Case

This section demonstrates the normal reassessment process for a liability case. To understand the difference between benefit and liability over or underpayments, consider the example where an overpayment exists on a benefit case with the value of $5. In this example, the eligibility and entitlement engine has determined that the benefit case has been over paid $5. To rectify this overpayment, the organization can deduct this $5 from future case benefits. Now consider a second example where the eligibility and entitlement engine has determined that the liability case has been underbilled $5. To rectify this, the organization can add this $5 to a future bill. The organization could also decide to deduct this $5 from any of the existing benefits related to the liability case. This is the same action the organization would take for a benefit overpayment.

For the purpose of demonstrating reassessment processing for a liability case, this section uses a new set of sample data which includes a change in circumstance for a liability product. Note that the liability sample data used to demonstrate reassessment processing for a liability case is similar to the sample data used to demonstrate reassessment processing for a benefit case. For both benefits and liabilities, the eligibility and entitlement engine follows the same processes when creating new and virtual financial components, checking if reassessment is required, and defining the reassessment period. Thus, by using the similar data, it is not necessary to describe how the eligibility and entitlement engine performs these processes for a liability case. The following table outlines the new set of liability sample data:

Table 1. Liability Sample Data

Sample Data

Before Change in Circumstance

After Change in Circumstance

Primary Client

James Smith.

Same.

Product Type

Sample Liability product.

Same.

Product Rerate Frequency

Every week on a Wednesday

Same.

Case Certification Period

Certification period from April 1st - April 30th, 2004.

Certification period from March 15th - April 15th, 2004. This new certification period is the change in circumstance.

Case Start Date

April 1st, 2004.

March 15th, 2004.

Case Expected End Date

April 30th, 2004.

April 15th, 2004.

Case Nominee Delivery Pattern

Weekly in advance on a Friday.

Same.

Rules Objective

Employee Contribution Liability rules objective. The daily rate for this rules objective is $10 until April 5th, 2004, when legislation increases the value of the daily rate to $11. The weekly rate is $70 until April 5th, 2004, when legislation increases the value of the weekly rate to $77.

Same.

Date up to which liability has been invoiced.

No ILIs have been created for the liability, thus there is no date up to which the liability has been invoiced.

April 30th. This means that all FCs on or before April 30th have been realized into actual financial transactions, i.e., ILIs.