An agreement between the provider and a third-party payer whereby the provider agrees to accept the payer's allowed fee as payment in full for a particular service or procedure is referred to as:
A) patient equity.
B) balance billing.
C) a prospective payment.
D) a contractual write-off.

Question

Quizplus · Accepted Answer

This is referring to a contractual adjustment, where the provider agrees to write off the difference between their billed charges and the allowed fee from the third-party payer. This is commonly seen in contracts between providers and insurance companies or Medicare/Medicaid. Understanding contractual adjustments is important for medical billing and coding professionals.

An Agreement Between the Provider and a Third-Party Payer Whereby