Insurance Estimation Methods

When setting up an Insurance Plan for Insurance Estimating, you must select an Estimation Method. (Tables > Insurance > Plans > Fees/Benefits)

The following methods are available:

DMO

Charge Amount = NOT USED

UCR = DMO allowable fee

Ext = Optional. This field is treated as a percentage when provided.

Insurance Percentage = NOT USED

Ins Share = 0

Pat Share = UCR

Writeoff = 0

When Ext is provided:

Ins Share = UCRxExt

Pat Share = UCR – Ins Share

Writeoff = 0

Explanation

This calculation method replaces the office fee with the insurance UCR value.

INS UCR

Charge Amount = Office Fee

UCR = Insurance allowable fee

Ext = NOT USED

Insurance Percentage = NOT USED

Ins Share = UCR

Pat Share = Charge Amount – Ins Share

Writeoff = 0

Explanation

In this method, the insurance specifies the exact dollar amount that it covers for each procedure.

% INS UCR

Charge Amount = Office Fee

UCR = Insurance allowable fee

Ext = Percent of UCR that the insurance will pay

Insurance Percentage = NOT USED

Ins Share = UCRxExt

Pat Share = Charge Amount – Ins Share

Writeoff = 0

Explanation

In this method, the insurance specifies the UCR amount, and also the percent amount that the insurance will pay.

FFS

Charge Amount = Office Fee

UCR = NOT USED

Ext = Optional.  This field is treated as a percentage when provided

Insurance Percentage = Percent coverage based on procedure type

Ins Share = Charge Amount x Insurance Percentage

Pat Share = Charge Amount – Ins Share

Writeoff = 0

When Ext is provided:

Ins Share = Charge Amount x Ext

Pat Share = Charge Amount – Ins Share

Writeoff = 0

Explanation

In this method, the insurance does not provide a UCR, but does provide percent coverage values, either by procedure category (ie, anesthesia, xray, or consult) or a procedure-specific percent.

UCR + FFS + WO

Charge Amount = Office Fee

UCR = Insurance allowable fee

Ext = Optional.  This field is treated as a flat dollar amount when provided

Insurance Percentage = NOT USED

Ins Share = UCR

Pat Share = 0

Writeoff = Charge Amount - UCR

When Ext is provided:

Ins Share = Ext

Pat Share = UCR – Ext

Writeoff = Charge Amount – UCR

Explanation

In this method, the insurance provides a UCR fee. The insurance may also specify how much of the UCR  fee will be paid.    

% UCR + FFS + WO

Charge Amount = Office Fee

UCR = Insurance allowable fee

Ext = Optional.  This field is treated as a percentage when provided

Insurance Percentage = Percent coverage based on procedure type

Ins Share = UCRxInsurance Percentage

Pat Share = UCR – Ins Share

Writeoff = Charge Amount - UCR

When Ext is provided:

Ins Share = UCRxExt

Pat Share = UCR – Ins Share

Writeoff = Charge Amount – UCR

Explanation

In this method, the insurance specifies the UCR amount, as well as the percent amount that insurance will pay. This percentage may be a category percentage (ie, anesthesia, xray, or consults) or specific to the procedure.

Capitation

Charge Amount = Office Fee

UCR = Insurance allowable fee

Ext = Required.  This is a flat dollar amount.

Insurance Percentage = NOT USED

Ins Share = Ext

Pat Share = 0

Writeoff = Charge Amount – Ins Share

Explanation

In this method, the insurance specifies the UCR amount and exact dollar amount per procedure that will be paid.  

% Capitation

Charge Amount = Office Fee

UCR = Insurance allowable fee

Ext = Optional.  This field is treated as a percentage when provided

Insurance Percentage = Percent coverage based on procedure type

Ins Share = UCRxInsPercent

Pat Share = 0

Writeoff = Charge Amount – Ins Share

If Ext field is provided:

Ins Share = UCRxExt

Pat Share = 0

Writeoff = Charge Amount – Ins Share

Explanation

In this method, the insurance specifies the UCR amount, and the percent coverage, either by procedure category (ie, anesthesia, xray, or consult) or specific to a procedure.