What Is a Contractual Allowance

question 89

Multiple Choice

What is a contractual allowance?

• A) It ensures the hospital or provider will get paid 100% of billed charges for services rendered.
• B) The minimum amount an insurance carrier will pay a hospital or provider for services rendered.
• C) The contract set up between the patient and provider for allowable patient charges
• D) The maximum amount an insurance company will pay a hospital or provider for services rendered.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often characterized by physical symptoms.

Correlation

A statistical measurement that indicates the extent to which two or more variables fluctuate together.

Facts

A statement or assertion that can be proven to be true or is accepted as true based on evidence.

Theories

Systematic, organized frameworks of concepts and principles designed to explain and predict phenomena.