Discount Amount in Medical Billing
The discount amount is the reduction in the total charge for medical services, often due to a contractual agreement between the provider and insurance company.
Discount Amount in Medical Billing Explained
In medical billing, discount amounts are applied when a healthcare provider agrees to accept a lower payment from an insurance company than the original charge. The difference between the billed amount and the allowed amount is the discount, which the patient is not responsible for.
For example, if a doctor bills $200 for a service, but the insurance company’s allowed amount is $150, the $50 difference is the discount amount.
Learn more about common acronyms and abbreviations in Medical billing glossary.
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