Explain why there might be a write-off, or adjustment, for patients who have a health plan in which the physician participates.
What will be an ideal response?
When participating in a health plan as a provider, agreements may have been made to accept certain fee schedules or payment arrangements, or to give discounts as a condition of being a participant. Adjustments and write-offs are used to account for these agreements when posting payments. Adjustments and write-offs may also represent other agreements or conditions between the provider and the health plan, or the provider and the patient. Adjustments and write-offs can also be used to account for bad debts, to correct posting errors on the account, or in other situations where amounts are to be taken off (or added) to a patient account.
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What will be an ideal response?
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