If any part of a charge must be written off, that amount is entered.

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Multiple Choice

If any part of a charge must be written off, that amount is entered.

In medical billing, when any portion of a charge won’t be collected, that amount must be recorded as a write-off (an adjustment) on the patient’s account. Recording the write-off as an adjustment properly reduces the patient’s balance and reflects non-collection in the ledger, which keeps the account accurate for aging reports and financial records. The remittance advice should be kept for reconciliation, not destroyed. Posting the patient balance would increase what’s owed, which is the opposite of what happens with a write-off. A payer’s payment is entered when actual money is received, not when a portion of a charge is written off.

In medical billing, when any portion of a charge won’t be collected, that amount must be recorded as a write-off (an adjustment) on the patient’s account. Recording the write-off as an adjustment properly reduces the patient’s balance and reflects non-collection in the ledger, which keeps the account accurate for aging reports and financial records. The remittance advice should be kept for reconciliation, not destroyed. Posting the patient balance would increase what’s owed, which is the opposite of what happens with a write-off. A payer’s payment is entered when actual money is received, not when a portion of a charge is written off.

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