What is contractual allowance and value in medical term?

I cannot seem to find it in my book because it is not friendly but it suppose to be on my test and I do not have a medcal book (no money for one right now).I am taking up medical billing and coding.

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  • 1 decade ago
    Favorite Answer

    Contractual allowance is the agreed amount in which the insurance company will pay as opposed to what the facility/doctor will charge.

    Also, say a hospital charges $50 for something, the insurance contracted allowable would be, say, $40, so the contractual adjustment would be $10, essentially the hospital would be writing off the $10. The allowance is usually a percentage of each code.

    Taking a coding class with no book may not be the best idea.. Can you study w/someone who has a book?

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  • earls
    Lv 4
    4 years ago

    Contractual Allowance

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  • Anonymous
    5 years ago

    This Site Might Help You.

    RE:

    What is contractual allowance and value in medical term?

    I cannot seem to find it in my book because it is not friendly but it suppose to be on my test and I do not have a medcal book (no money for one right now).I am taking up medical billing and coding.

    Source(s): contractual allowance medical term: https://biturl.im/hTZuS
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