Full Definition
Incurred claims are medical or pharmacy claims for services that were rendered (incurred) during a defined period, regardless of when the claim was submitted or paid. The distinction between incurred and paid claims is critical in stop-loss contracting — "incurred and paid" (12/12) contracts only reimburse claims both incurred and paid within the policy year, while "paid" contracts reimburse all claims paid during the year regardless of when incurred.