Activating and inactivating automatic contracted write-offs

You can specify if contracted write-offs are posted automatically when claims are created.

Note: Changing the contracted write-off option affects all locations in your organization.

To activate or inactivate automatic contracted write-offs

1. On the Settings menu, click (or tap) Ledger Options.

   The Ledger Options page opens.

2. Select the Ledger Rules tab.

   

3. Under Insurance Estimates & Write-Offs, set the Automatically post contracted write-offs when claims are created switch to one of the following statuses:

   • Yes - When you create a claim for procedures that are contracted with a patient's insurance plan, a write-off adjustment will be posted automatically to the patient's Ledger to account for the difference between the allowed amount and the posted charges. This allows you to see net production amounts in the Ledger and on reports immediately. With this switch set to No, a contracted write-off adjustment will not be posted automatically. You will have to manually enter the adjustment when you post the insurance payment.

   • No - A contracted write-off adjustment will not be posted automatically. You will have to manually enter the adjustment when you post the insurance payment.

   Notes:

   • Turning this setting on does not affect claims that have already been posted and does not post automatic write-off adjustments for any existing claims. Because of this, you should carefully choose a clean cutoff date to start using this feature. At the start of a pay period, at the beginning of a new month or quarter, or after you have completed a current goal or bonus period are good transition points.

   • With this setting turned on, you cannot split claims with write-offs posted for them unless you first delete those write-offs.

   • With this setting turned on, if an open claim does not have a corresponding contracted write-off adjustment (for example, it has been deleted), when you are viewing the claim details, a Create contracted write-off when claim is saved switch appears. To post a contracted write-off adjustment, set the switch to Yes, and then click (or tap) Save.

     

   • Be aware that even with this setting turned on, a write-off adjustment is not posted automatically for a primary insurance claim in any of the following situations:

     • The claim billing provider is not contracted with the insurance carrier.

     • For any procedure on the claim, the contracted amount from the secondary insurance carrier's fee schedule is equal to the contracted amount from the primary insurance carrier's fee schedule.

     • For any procedure on the claim, the sum of the estimated primary and secondary insurance payments is equal to the UCR fee.

   • Changes in the status of this setting are tracked in the Audit Log.

4. Click (or tap) Save.