Let us first see what is Co-pay, Co insurance and Deductible
A co-payment, or co-pay, is the flat amount you pay at the time of a medical service or to receive a medication. All insurance companies provide these costs to you up front. Insurance companies use these co-pays in part to share expenses with you.
Co-pay example: A doctor’s office visit might have a co-pay of $30. The co-pay for an emergency room visit will usually cost more, such as $150. However, there is a maximum amount you will pay for coinsurance and co-pays. This is called the coinsurance and co-pay maximum.
Coinsurance and co-payments are not the same thing. A co-payment is a specific amount that you pay to the provider before you meet your deductible. Coinsurance is a percentage of a provider’s charge that you may be required to pay after you’ve met the deductible.
Example of coinsurance: Say you’ve already paid out (or met) your $147 Medicare deductible and your coinsurance is 20 percent. For a $100 health care bill, you would pay $20 and your insurance company would pay $80.
When you’ve met your deductible, you’ll have to pay coinsurance (Medicare is set to 20 % of the provider’s charge) until you reach your out-of-pocket maximum. After that, the insurance company will pay for all covered services to the policy maximum for the remainder of the year
A deductible is the amount you pay for health care services before your health insurance begins to pay. For Medicare, this resets every year on January 1st.
Part B Deductible for 2014: $147 per year (for most people).
Difference Between Co-pay and Coinsurance
Coinsurance: Coinsurance is a term used for a percentage amount you are responsible for. For example if your insurance policy is 80/20, then the insurance is 80%. You are responsible for paying 20% of your bill. The 20% that you owe is called "coinsurance." This amount can vary as the cost of the services performed varies.
Co-pay: A co-pay is usually a flat fee. For example, every time you go to the doctor you pay a 25.00 co-pay for the office visit, regardless of the level of service you receive.
While doing insurance Posting in PMS Software, line item may contain Co pay, Co Insurance and Deductible. The following are guidelines to handle the same.
PR - 1 Deductible Amount
In insurance policy terms, a deductible is the amount of money which the insured party must pay before the insurance company's own coverage plan begins. In practical terms, insurance companies include a deductible in their policies to avoid paying out benefits on relatively small claims.
1. We need to bill the patient.
2. If the patient has another insurance coverage which covers deductible we can file to that insurance, if the policy not cover primary deductibles we have no other way rather than billing the patient.
Claim processed as PR - 2 Coinsurance Amount
PR - 2 Coinsurance Amount
Coinsurance amounts are generally 20% of the Medicare fee schedule. Physicians must collect the unmet coinsurance from the beneficiary. Consistently waiving the coinsurance may be interpreted as program abuse. If a beneficiary is unable to pay the coinsurance, the physician should ask him or to sign a waiver that explains the financial hardship. If no waiver is signed, the beneficiary’s medical record should reflect normal and reasonable attempts to collect, before the charge is written off.
1. We need to file the claim to secondary insurance
2. If there is no secondary insurance we can bill the patient
EOB - PR - 3 Co-payment Amount
PR - 3 Co-payment Amounts
Co-payment A specified dollar amount or percentage of the charge identified that is paid by a beneficiary at the time of service to a health care plan, physician, hospital, or other provider of care for covered service provided to the beneficiary.
Cost sharing the general set of financial arrangements whereby the consumer must pay out-of-pocket to receive care, either at the time of initiating care, or during the provision of health care services, or both. Cost sharing can also occur when an insured pays a portion of the monthly premium for heath care insurance.
1. We need to bill the patient.
2. If there is any other insurance coverage if the patient has, we can bill to that insurance also.
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