Which term refers to the differences between established rates & the amounts collected for servcices rendered.

Question

to Medicare patients?

a. Uncollectable accounts

b. Contractual adjustments

c. Bad debts

d. Charitable Adjustments for the Aged

Answer 1

B. Contractual adjustments

The providers actual "costs" are billed ,but medicare pays according to a previously agreed to amount (which is usually much less than the actual amount charged). The balance is written off (contractual adjustment) less any deductible and/or co-payment which is due from the patient.

Answer 2

do eat alot  of peanuts