What Is Credit Balance in Medical Billing? (1)

1
What Is Credit Balance in Medical Billing?
2

• The complex process of medical billing is well
  known in various practices and medical centers,
  but theres 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, youll 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.

3
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
  its 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

4

• 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.

5
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-medic
  al-billing/