Crucial Exams

AAMA CMA Practice Question

Which statement best describes a contractual adjustment (also called a contractual allowance) when it is posted to a patient account by a participating provider?

  • It is the negotiated difference between the billed charge and the payer's allowed amount that the provider writes off; it is not the patient's responsibility.

  • It is an extra fee the provider may add to recover revenue after insurance payment.

  • It converts the insurer's portion of the bill into patient coinsurance.

  • It raises the amount the patient must pay toward the deductible for that service.

AAMA CMA
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