Insurance underpayments can occur if the splits predicted were inaccurate and the insurance is covering less than initially calculated. If there is an underpayment, Power Practice will notify you and give the option to Transfer Balance.
Note: The following practice example should be performed in the Training Database. This will give you the opportunity to familiarize yourself with underpayments without affecting your office A/R
Entering an Insurance Underpayment
- Under the Ins Payment tab in Transactions, click New
- Enter the Code, Payee and Amount and click Save
- This will open the Payment Allocations window
- Select the treatment line that is being paid, enter the amount listed on the cheque and click Apply
- Continue to select treatment, enter the amount paid for that line and applying funds until the Bal to Apply is at 0.00
Note: As this is an underpayment, there will still be a Balance remaining.
- Click Ok to save
- You will get the Insurance Underpayment window
- If this payment is all that the insurance company is going to cover for the claim, select Yes
This will transfer the remaining owing amount from that claim to the patient. It will show on the ledger as TB (Transfer Balance) and the patient will now owe this amount
Note: Inspecting the image above, you can see the Pay Amt. showing the value we initially entered as a payment. The Bal. to Apply has been reduced to 0.00 by applying payments to specific lines of the claim. Referring to the columns within the Payment Allocations box, you can see the Balance column shows a $13.00 remaining balance for the claim and the Applied amount showing in the Applied column.
