What are the advantages or disadvantages to billing a commercial insurance company our negotiated rate according to our fee schedule with them, as opposed to billing our regular, higher rate?
Question: What are the advantages or disadvantages to billing a commercial insurance company our negotiated rate according to our fee schedule with them, as opposed to billing our regular, higher rate?
Answer: Charging the payer only its allowable is called "netting the A/R" or "netting the charges" and it creates three problems:
Some practices do indeed net the charge, but it's rare.