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The complex process of medical billing is well known in various practices and medical centers, but thereu2019s a specific aspect that can be incredibly convoluted, which is the concept of a credit balance.
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The complex process of medical billing is well known in various practices and medical centers, but there’s a specific aspect that can be incredibly convoluted, which is the concept of a credit balance. • As the owner of a medical practice or healthcare physician, you’ll need to know what credit balances are in the context of medical billing, because they can impact a range of financial transactions and need to be resolved as quickly as possible. • So, in this article, we will explore the answer to the question ‘What is credit balance’ in terms of medical billing, why credit balances happen, and the best ways you can resolve them quickly if they have occurred in your practice or medical center.
What Does Credit Balance Mean in Medical Billing? • First off, credit balance means that an amount of money is owed, either to one of your patients or an insurance company from your medical practice – it’s due to payments that exceed the cost of the treatment or medical service rendered, and they need to be resolved by your practice. • Of course, there are a couple of reasons credit balances can happen; the insurance company might make an overpayment (more than the allowed amount) to your medical practice or
medical center, or a patient might pay more than the cost of the charges owed. Any excessive amounts can become a credit balance. • Now, in other scenarios, such as when the insurance coverage of a patient changes, credit balances can also happen, and it leads to a retroactive adjustment of claims that were previously paid. In cases where a new insurance plan lowers the cost paid for a previous claim, there will be a difference in the reduced payment and the original one. And this difference is the credit balance.
Credit Balance in Medical Billing: Consequences to Consider • In terms of credit balances in medical billing, there are consequences to consider, not just for your patients, but for you as a healthcare provider. • To read our full blog, click here:https://pmninc.biz/what-is-credit-balance-in-medical-billing/
