Use the Receive Insurance Payment window to process insurance payments.
This topic explains the features that are specific to Line Item accounting.
If the claim includes a write off, an insurance write off code must be selected. With Line Item accounting: insurance write-offs are posted when the insurance payment is recorded, not during checkout as with Balance Forward accounting. An adjustment code must already be assigned in order for PracticeWorks to post the write off.
There are two ways a write off code is defined in this window: Predefined, and manual entry.
If a code is selected for UCR write-offs in insurance estimating, then it is used for insurance write-offs. The write-off code selection honors the levels of estimating, moving to the next location if a code is not found. The order is:
1 - Employer Plan 2 - Insurance Company 3 - Office-wide Setup
If no write-off code is pre-defined at any level, the message <no write-off selected> is displayed next to Select write-off button.
To enter the write-off code manually:
Click Select write-off to display the Transaction code list, filtered for adjustment codes.
Select an adjustment code. You are prompted to save this as the default write-off code.
Click Yes to save the code to the Employer Plan and use it for this payment. Click No to use it for this payment without saving.
The amount of insurance applied to the procedure cannot exceed the Submitted amount minus the Previous IP.
If Submitted = $100 and Previous IP = $20, the combined total of Amt to apply and Amt to write-off cannot exceed $80.00.
The cumulative total of Amt to apply cannot exceed the Insurance payment amount as displayed in the upper left corner of the window.
If the payment amount = $40, the sum of Amt to apply cannot exceed $40. If you attempt to apply more than the check amount, the error message: "Distributions exceed the payment amount. Please reduce distributions to proceed." You cannot complete the insurance payment process until this corrected. Click Cancel to return to the Post New Entries window. All distribution information is lost.
If the sum of Amt to apply is less than the payment, the message: "Additional distributions are possible" is displayed. You can click OK and distribute the payment from the Payment Distribution window later.
The write-off amount cannot exceed the Submitted amount minus the Previous IP.
If the write-off amount is not recorded on the Receive Insurance Payment window, you must add it manually to the ledger, distributing it via the Payment Distribution window.
When the Amt to apply and Amt to write-off entries are complete, select an OK option for updating the blue book. The insurance payment and write off are recorded on the Ledger, as well as the distributions to the claim procedures.
PracticeWorks generates write-offs by producer unless you have Write-off by producer unchecked in the File > Preferences menu. In that case, they are generated by production owner.