6. Details of Certain Balance Sheet Accounts

Prepaid expenses and other current assets consist of the following:


	December 31,
	2016		2015
	(Amounts in Thousands)
Prepaid health insurance	$	2,238	$	490
Prepaid workers' compensation and liability insurance		1,190		1,526
Prepaid rent		568		578
Workers' compensation insurance receivable		747		1,303
Other		1,255		961
	$	5,998	$	4,858

Accrued expenses consisted of the following:


	December 31,
		2016		2015
	(Amounts in Thousands)
Accrued payroll	$	17,509	$	13,304
Accrued workers' compensation insurance		12,823		14,116
Accrued health insurance (1)		4,092		950
Indemnification reserve (2)		419		754
Accrued payroll taxes		1,747		1,805
Accrued professional fees		1,485		1,084
Accrued severance (3)		1,326		—
Accrued restructuring (4)		1,786		—
Other		1,416		3,069
	$	42,603	$	35,082

(1)	The Company provides health insurance coverage to qualified union employees providing personal care 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 Company's 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 $2.2 million and $0.5 million for health insurance reimbursements and contributions were reflected in prepaid insurance and accrued insurance at December 31, 2016 and 2015, respectively.
(2)	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 of the sale. In connection with an internal evaluation of the Company's 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 $1.8 million to the government in March 2014. The Company, using its best judgment, has estimated a total of $0.4 million for billing adjustments for 2013, 2012 and 2011 services which may be subject to Medicare audits. For the years ended December 31, 2016 and 2015, the Company reduced the indemnification reserve accrual by the amounts accrued for periods no longer subject to Medicare audits of $0.2 million and $0.4 million, respectively. This amount is reflected as a reduction in general and administrative expense of discontinued operations.
(3)	Accrued severance represents amounts payable to terminated employees with employment and/or separation agreements with the Company.
(4)	Accrued restructuring includes reserves for lease commitments related to the closure of three adult day services centers in Illinois during the third quarter of 2016 and unused contact center office space.

The Company's workers' compensation program has a $0.4 million deductible component. The Company recognizes its obligations associated with this program in the period the claim is incurred. The cost of both the claims reported and claims incurred but not reported, up to the deductible, have been accrued based on historical claims experience, industry statistics and an actuarial analysis performed by an independent third party. The future claims payments related to the workers' compensation program are secured by letters of credit. These letters of credit totaled $16.7 million at December 31, 2016 and 2015.

As part of the terms of the acquisition of Addus HealthCare in 2006, all 2005 and prior workers' compensation claims were the obligation of the former stockholders of Addus HealthCare. During the fourth quarter of 2014, Addus entered into an agreement pursuant to which the responsibility of the selling shareholders for these claims was terminated. The outstanding loss reserves associated with the 2005 and prior workers' compensation policies approximated $0.7 million and $0.8 million at December 31, 2016 and 2015, respectively. The Company received $0.8 million in cash and escrow amounts in exchange for the termination of these liabilities.