Provider Write-Off
What Does Provider Write-Off Mean?
A provider write-off refers to the amount deducted from the fees charged for a service provided by a healthcare facility associated with an insurance company. This write-off may involve not billing the insured for services that exceed the allowable costs established by the insurance company.
Insuranceopedia Explains Provider Write-Off
A health insurance company maintains a network of healthcare facilities, such as hospitals and clinics, that provide services to its policyholders. These facilities bill policyholders differently compared to those who are not part of the network.
For each healthcare service, there is an allowable payment set by the insurance company. The accounting system then writes off any amount exceeding this allowable payment. For example, if a procedure is typically billed at $100 but the network agreement permits the facility to charge policyholders only $95, the excess $5 is written off.
