Can some explain to you the difference between an insurance adjustment vs insurance write-off You are a Vision care provider and you want to know the correct approach to imputing the insurance paymen?

Answer 1

In short, an adjustment is the difference between your contract rate with the insurance company and your billed charge for the specific procedure (this assumes that your billed charge is above the contract rate, otherwise there is no adjustment). It is the amount that you are not owed, per your insurance contract. A write-off is the difference between your contract rate with the insurance company and the amount you actually collect (this assumes you collected less than the contract rate, otherwise you will have a refund to send). Essentially, this is money you are allowed to collect per your contract, but did not. This could be a write-off of the patient deductible or money not appealed and therefore 'written off' the books. Some write-offs are intentional, but most are not. While adjustments are not usually quantified, because they are not collectible amounts, it is important for your medical billing service/person to provide you a regular summary of total write-offs. Usually with your monthly report. This will show you how good (or bad) your medical billing provider is.