Maximum Allowable Charge in Medical Billing
The maximum allowable charge is the highest amount an insurance company will pay for a particular service or procedure.
Maximum Allowable Charge in Medical Billing Explained
In medical billing, the maximum allowable charge is set by insurance companies to control costs. If a provider charges more than the maximum allowable amount, the patient may be responsible for paying the difference unless they are in-network.
For example, a provider charges $500 for a service, but the insurance company’s maximum allowable charge is $400, leaving the patient to cover the $100 difference if the provider is out-of-network.
Find common acronyms and abbreviations in Medical billing glossary.
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