5. Details of Certain Balance Sheet Accounts

Prepaid expenses and other current assets consisted of the following:


		September 30,		December 31,
		2014		2013
		(Amounts in		(Amounts in
		Thousands)		Thousands)
Prepaid health insurance	$	2,876	$	3,192
Prepaid workers compensation and liability
insurance		1,623		1,173
Prepaid rent		507		455
Workers compensation insurance receivable		940		821
Other		991		594
	$	6,937	$	6,235

Accrued expenses consisted of the following:


		September 30,		December 31,
		2014		2013
		(Amounts in		(Amounts in
		Thousands)		Thousands)
Accrued payroll	$	15,163	$	12,932
Accrued workers compensation insurance		13,527		13,347
Accrued health insurance		3,217		3,731
Indemnification reserve (1)		1,476		3,224
Accrued payroll taxes		2,029		1,755
Accrued professional fees		1,263		1,319
Amounts due to LHCG (2)		17		2,196
Current portion of contingent earn-out
obligation (3)		2,120		1,100
Other		2,622		2,341
	$	41,434	$	41,945

(1)	As a condition of the sale of the Home Health Business to subsidiaries of LHC Group. Inc. (LHCG) the Company is responsible for any adjustments to Medicare and Medicaid billings prior to the closing. In connection with an internal evaluation of the Companys billing processes, it discovered documentation errors in a number of claims that it had submitted to Medicare. Consistent with applicable law, the Company voluntarily remitted $1,840,000 to the government in March 2014. The Company, using its best judgment, has estimated a total of $1,476,000 for billing adjustments remaining.
(2)	Amounts due to LHCG pursuant to a billing services arrangement between the Company and LHCG.
(3)	The Company acquired certain assets of CHHC on December 1, 2013 and acquired Aid & Assist on June 1, 2014. The purchase agreements for the acquisitions contained provisions for earn-out payments. The contingent earn-out obligations have been recorded at their fair values of $1,100,000 and $1,020,000, respectively, which is the present value of the Companys obligations of up to $2,250,000 and $1,168,000 for CHHC and Aid & Assist, respectively, based on probability- weighted estimates of the achievement of certain performance targets.

The Company provides health insurance coverage to qualified union employees providing home and community based services in Illinois through a Taft-Hartley multi-employer health and welfare plan under Section 302(c)(5) of the Labor Management Relations Act of 1947. The Companys insurance contributions equal the amount reimbursed by the State of Illinois. Contributions are due within five business days from the date the funds are received from the State. Amounts due of $2,836,000 and $3,163,000 for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance at September 30, 2014 and December 31, 2013, respectively.