Understanding the Claims Process- PLEASE READ
Claims are processed as follows:
Billed Amount for each CPT- The billed amount is based on the provider fees schedule
Allowed amount - Each plan has an amount that each CPT code is worth and has NO relation to the providers fee schedule
The difference between the billed amount and the allowed amount is called the provider adjustment
Patient Responsibility- Any responsibility like copay, deductible , coinsurance is taken from the allowed amount
Pay Out- any amount that is paid out is the difference between the allowed amount and the patient responsibility.
Example
CPT 59400 allowed amount is 2500.00 the billed amount is 5000.00
Patient has 500.00 in unmet deductible
59400 - 5000
allowed 2500
Write off 2500
of the allowed amount 2500
patient responsibility 500.00
payout 2000.00