Payment Plan Q and A

Below are some questions and answers about Patient Payment Plans.

Information may also apply to Dynamic Payment Plans and Insurance Payment Plans .

Pay Plan Charge Logic

How does each Pay Plan Logic Preference function?

Pay Plan Logic Preference, determines how charges and credits for Patient Payment Plans and Dynamic Payment Plans show in the patient account ledger and whether they affect balances, aging, and reports. This logic does not apply to Insurance Payment Plans.

Below is information on how each preference functions and screenshots of how Payment Plans will appear in the Patient Account ledger.

Do Not Age (Legacy): Payment plan debits (amounts due) and payments only show within the payment plan and will not affect balance or aging.

Age Credits and Debits (Default): Payment plan debits, credits, and payments will show as line items in patient account ledger and affect balances and aging.
When the patient is in the same family as the payment plan guarantor, the behavior is as follows.

When the patient is in a different family than the payment plan guarantor, the behavior is as follows.

Age Credits Only: Patients are credited for payment plans when the credit comes due, but debits all exist separately from the account ledger.

No Charges to Account (Rarely Used): No Pay Plan Credits or Pay Plan Debit are posted to the account. Patients are not credited for payment plans, so the account balance is aged normally.

Changing Pay Plan Charge Logic

I am considering transitioning to Age Credits and Debits logic. What do I need to know?

When you first transition, patient account balances will change:

How can I see the difference between Do Not Age logic and Age Credits and Debits logic in the Aging of A/R Report amounts?

  1. With Do Not Age selected:
    • Run the Aging of A/R report (Check Include Negative Balances).
    • Run the Payment Plan Report. Select Patient as the Payment Plan Type. Uncheck Hide Completed Payment Plans and Limit to Plans Created in Date Range. The Due Now column will indicate the total payment plan amount due.
  2. With Age Credits and Debits selected, run the Aging of A/R report again (Check Include Negative Balances).

The Total column from the report in step 1 (traditional) + the Due Now amount from the Payment Plan report will equal the Total column from report in step 2 (Age Credits and Debits).

Overcharged Payment Plans

A patient has a payment plan with overcharged production. How do I reduce the production on the plan and re-allocate the patients' overpayment?

A payment plan may become overcharged if procedures attached to the plan are discounted or if insurance pays more than expected after the payment plan is created. To reduce the payment plan charges, the easiest method is to delete the payment plan and recreate it for the correct procedure balance. However, if payments are attached to the plan, complete the steps below.

In order to correct the payment plan, it must be open and have a remaining balance equal to the total overcharged amount.

  1. If the payment plan is closed, double-click into the plan, click Reopen, then click OK to exit and save.
  2. Transfer patient income from each overcharged procedure on the payment plan and allocate it to an outstanding charge or to Unearned Income (to be allocated later). See Income Transfer.
  3. Double-click back into the payment plan and create a pay plan adjustment to remove the overcharged production; click Add Adjustment.
  4. In the Negative Pay Plan Adjustment window, enter the total overcharged amount and click OK. The total adjustment amount will be credited to the payment plan. If the total adjustment exceeds a single pay plan charge, the amount is split between the pay plan charges with a remaining balance.
  5. Associate the pay plan adjustment to the procedure credits attached to the payment plan; click View Tx Credits.
  6. In the Payment Plan Procedures and Credits window, highlight the Adjustment credit (blue line item) and click Delete. This will remove the unattached credit created by the pay plan adjustment.
  7. Create a new credit attached to each overcharged procedure. Overcharged procedures will have a negative amount in the Rem After column. Highlight the overcharged procedure (yellow line item), verify the amount matches the amount to be credited, and click Add. Repeat for each overcharged procedure on the payment plan, then click OK to save and exit the Tx Credits window.
  8. If the amounts on the payment plan summary all match and there are no future charges remaining, the payment plan may be closed; click Close.