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Applying Writeoffs to Production

If you have insurance plans that use the PPO percentage insurance plan type, there are several reports that can be used to report writeoffs.

Within each report are three options for 'Show Insurance Writeoffs'. These options affect the date of writeoffs in the report.

Set the default option in Report Setup - Misc Settings, Default to using Proc Date for PPO writeoffs.

Option 1: Using insurance payment date: Apply writeoffs when the insurance payment is received. We recommend this option when you do not know the writeoff amount when service is completed (carrier fee schedule is unknown).

  • Advantage: Historical reports will not be affected when the insurance payment (and writeoff) is entered.
  • Disadvantage: Net production (Tot Prod) for the day will not reflect the writeoff. Instead writeoffs will be counted against production many weeks after the actual work was done.

This method is used in the patient Account module. If you use Global Lock Dates use this method.

Option 2: Using procedure date: Apply writeoffs when the procedure is completed. We recommend this option when you know the writeoff amount when service is completed (you have entered the carrier's fee schedule).

  • Advantage: Net production for the day will reflect the writeoff (production subtracts writeoff amount).
  • Disadvantage: If the writeoff amount is changed when the insurance payment is entered, historical reports need to be re-run.

Option 3: Using both (procedure date for writeoff est, ins pay date for writeoff adjustments):

Example
Let us look at how each option affects the reporting of just one procedure in a monthly production and income report.

  • Patient receives a $500 crown
  • The insurance plan out-of-network fee is $300
  • You will write off $200
  • The patient pays $60 at the time of service
  • 22 days later, the insurance pays $240

Option 1: Show using insurance payment date. Writeoffs are applied to production on the insurance payment date.

Option 2: Show using procedure date. Writeoffs are applied to production on the date of service.

Option 3: Using both. Procedure date for writeoff estimate, insurance pay date for writeoff adjustment.

 

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