Contract Write Off

Contract write offs can be entered at the time of Charge Entry or in Payments and Adjustments once a claim has been processed by the insurance.

Charge entry

To enter the contractual write offs in Charge Entry, enter all charges and then select  or Create Contract Tx in the navigation bar  of the Charge Entry form. This will invoke the Contract Writeoff Transaction form.

The Amount will default to the Billed Fee minus the Contract Amount. The TX Code will default to the Contractual Write Off Code entered in the Default Transactions tab of Payer Configuration Overview. If no contract was selected, either field can be entered manually or edited prior to completing the transaction. Once both have been verified, entered, or corrected select OK to create the transactions and close the form.  

Then, click Save on the Charge Entry form.

 

 

Payments and Adjustments

To enter the contractual write offs in Payments and Adjustments, start by entering the payment for a visit in the Applied Amount field. Enter a check in the Contract check box. The TX Code will default to the Contractual Write Off Code entered in the Default Transactions tab of Payer Configuration Overview. If a contract has been selected and contractual rates exist for the posted procedures, the Amount will default to the Billed Amount minus the Contract Fee, but can be edited.

If it is necessary to enter additional contractual write offs as a separate transaction, the third write off field in Payments and Adjustments allows for the selection of either AD (adjustment) or CW (contractual write off). Simply select CW, enter the appropriate Tx Code, and the Amount of the additional write off. In the example below, an additional contractual write off was entered for the Medicare Sequestration amount.