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What Is a Contractual Allowance

Question 52

Multiple Choice

What is a contractual allowance?


A) It ensures the hospital or provider will get paid 100% of billed charges for services rendered.
B) The minimum amount an insurance carrier will pay a hospital or provider for services rendered.
C) The contract set up between the patient and provider for allowable patient charges
D) The maximum amount an insurance company will pay a hospital or provider for services rendered.

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