For each insurer, you can set fee schedules which define the dollar amount the insurer has agreed to pay a specific doctor for a specific CPT. i.e. the contracted rate fee schedule.
The allowed amount is the insurer’s contracted rate (for the doctor who performs the service). The difference between the contracted rate & your standard CPT fee is automated as a non-collectible payment entry in the ledger.
For example if a charge for a CPT is $75 & the fee schedule allowed amount is $50 when adding visits a $25 non-collectible payment will be posted to ledger automatically along with the visit/charges. Continue reading