Days in Claims Payable
A liquidity-and-reserving gauge: the insurer's outstanding unpaid medical claims divided by average daily medical costs, expressed as a number of days (often 45-55). It answers "how many days of claims does the insurer have booked but not yet paid?" It matters for two reasons. First, a sudden DROP can flatter earnings artificially -- if the insurer under-reserves for claims that have been incurred but not yet reported, current profit looks better than it is, and the shortfall surfaces later. Second, a sharp RISE can signal claims-processing slowdowns. Analysts track quarter-to-quarter changes closely as an early-warning sign on reserve adequacy.
Related terms
Accounts Payable · Adjusted EBITDA · Adjusted EBITDA Ex-SBC · ADR · ARPU · Average Length Of Stay
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