Overpayments, Interest Payments, and Capitation
Simple overpayments, such as when your practice collected the wrong copay amount, are easy to fix as you post insurance payments. But what about other overpayments, insurance interest payments, and capitation payments? You can use holding accounts in your PCC system to record other types of income for accounting purposes.
Occasionally, insurance carriers pay you interest for charges they have failed to pay in a timely manner. How can you record that interest in PCC, without throwing off your Accounts Receivable? An interest payment is unexpected revenue that should not be posted against the original charges. Is there a "correct" way of keeping track of the income in PCC?
Insurance companies sometimes pay you more than the remaining balance due on a charge or more than the contracted amount. Since you can not post more money than was due, and the payment may be “taken back” later, how can you track the overpayment?
Capitation payments are not like other income. How should you configure the PCC billing system so you can enter and track capitation payments over time? Read the steps below to learn how to create appropriate insurance groups, plans, and income accounts to record and track capitation. For this example, we will create a new capitated […]