Write Off Codes
Write-off Codes seem like a small feature, but it can have a huge impact on how this reflects in your accounts receivable's aging buckets and Reports. Take the time to learn how to create the right Write-Off codes that will better your understanding of how each patients account is being written off.
Your ASP Practice Management Software comes with defaulted write-off codes, or offers medical offices the flexibility of creating their own. Once you've created your write-off codes keep in mind that some medical billing software system reports may not update any edits, or changes on past write-off's process.
|
|
|
A write-off is a portion of the bill that the medical office is either contracted to write-off or negotiated with the patient to adjust off.
When a medical doctor is contracted with a insurance carrier like Blue Cross Blue Shield they are required to write-off any balance that is higher than the Insurance Carriers allowed amounts for a specific procedure code.
|
An example of this is a provider of services billing Blue Shield of Montana procedure code 11400. The office billed $224.70 and the insurance allowed $84.49. The medical office will write-off $140.21 as their contractual adjustment to zero the claim.
Tracking write-offs and verifying the payment poster is adjusting off the correct portions is vital to the success of any doctors financial health. Setting up Write-Off codes for tracking purposes helps you analyze the flow of your Accounts Receivable.
Examples of write-off codes or Insurance Contractual Adjustments are: Aetna, BCBS, Cigna (Insurance) write-off codes, Bad Debt Write Offs, Small Balance Write-Off, Bankruptcy Write-off, Deceased Write-Off, Courtesy Write-Off, Timely Filing Write-Off, Discount Write-Off.
To learn more about Write-Off Codes and how to create them correctly please Watch our FREE Medical training video.
|
