Post Write-off concept: Which statement is true?

Post Write-off concept: Which statement is true?

• A. It represents a contractual adjustment posted to reduce the amount due.
• B. It represents the amount paid by the patient.
• C. It represents the denial reason.
• D. It represents the total charged amount.

Answer: (A)

Post-write-off activity focuses on adjustments for amounts that won’t be collected, usually because of payer contractual allowances. The statement that best describes this scenario is that a contractual adjustment is posted to reduce the amount due. When a claim is adjudicated, the difference between what was billed and what the payer allows under the contract is written off as a contractual adjustment. This reduces the recognized revenue to the net amount and lowers the accounts receivable accordingly. It’s not the amount the patient has paid, not the reason a claim was denied, and not the total original charges.

Post-write-off activity focuses on adjustments for amounts that won’t be collected, usually because of payer contractual allowances. The statement that best describes this scenario is that a contractual adjustment is posted to reduce the amount due. When a claim is adjudicated, the difference between what was billed and what the payer allows under the contract is written off as a contractual adjustment. This reduces the recognized revenue to the net amount and lowers the accounts receivable accordingly. It’s not the amount the patient has paid, not the reason a claim was denied, and not the total original charges.