The Difference Between the Billed Amount and the Allowed Amount

question 14

Multiple Choice

The difference between the billed amount and the allowed amount for services from a participating provider is:

• A) billed to the insurance carrier.
• B) billed to the patient.
• C) written off by the provider.
• D) written off by the insurance carrier.

---

Definitions:

Taxable Acquisition

A corporate acquisition or merger that is subject to taxation.

Tax-Free Acquisition

A type of corporate merger or acquisition structured in a way that allows for the transfer of assets without incurring federal income tax liabilities.

Capital Gains

The increase in value of an investment over its purchase price.