Question

A physician charges $87.00 for a service. the company allows the amount of $37.00. what is the appropriate adjustment

Answer 1

A Physician charges $87.00 for a service. The company allows the amount of $37.00. What is the appropriate adjustment?

Adjustments are charges that are changed to reflect the amount that was approved. With insurance, adjustments happen often because different companies only allow certain amounts for different services. In this case, a Physician charged $87 for a service but they are only allowed to bill for $37 so there needs to be an adjustment. To figure out the adjustment amount, take the amount that is allowed of $37 and subtract it from the amount charged $87 and that leaves you with a $50 difference. So, there needs to be an adjustment of $50 made.

Answer 2

The adjustment is $50.00. It is calculated by subtracting the $37.00 allowed amount from the physician charge of $87.00. If additional qualifiers were included in the question, the answer might vary.