How Do I Post a Retracted Insurance Payment from a Bulk Cheque?
Summary:
Insurance payment retractions occur when an insurance carrier takes back, or retracts, a payment that they previously made. Review the bulk cheque payment stub before entering the bulk cheque to identify any retracted payments. The Retraction process in ABELDent artificially increases the total value of the cheque so that it will be in balance with the constituent payments.
NOTE: In order to reconcile bulk cheques that include retractions, the retractions must be posted immediately after entering the cheque.
Steps:
To Retract an Assigned Insurance Payment (type "R"):
1. Enter the bulk payment.
2. On the patient's Financial tab, select the insurance payment to retract and press E/Insurance Payment Retraction.
3. Type the Amount Retracted and if appropriate, the Amount to Resubmit, Amount to Write Off and Attached Note. If Amount to Resubmit or Amount to Write Off is left blank, this will have the effect of moving the balance to the account side for collection.
4. Click OK.
5. Click Yes, to include this payment in the bulk batch. The bulk cheque amount will increase by the retracted amount.
6. Repeat from Step 1 until all retractions are posted.
7. Post the payments included in the cheque until it is closed.
To Retract a Non-Assigned Insurance Payment (type "I"):
If the original insurance payment received was recorded in ABELDent as an I/Non-Assigned Insurance Payment, you will need to handle the retraction with the use of Payment Adjustments. A separate payment adjustment must be applied for each code individually.
1. Open the patient's Financial tab, and ensure the view is set to "Detailed"
2. Select the billed code to which the insurance payment retraction applies and press C/Credit-Payment Adjustment.
3. Type the amount to be retracted with a hyphen (-) in the front of the number to represent a NEGATIVE payment adjustment.
4. Type a description or note as desired.
5. Click OK.
6. Repeat from Step 1 for any other billed codes to which insurance payment retractions apply
NOTE:
- Payment adjustments do not artificially increase the total value of the Bulk payment.
- Any retraction entered as a NEGATIVE value payment adjustment on an account will have to be offset by a corresponding POSITIVE value payment adjustment on another account requiring payment.
- For example, if the insurer retracts $50 on patient A, you will enter a payment adjustment of -$50 on patient A (negative amount).
- Subsequently, find patient B who is receiving payment included in the bulk cheque and enter a payment adjustment for $50 on patient B (positive amount), thus reducing patient B's balance.
- Then you may post a regular R or I type payment for the remainder being paid by the insurer, taking this amount from the bulk cheque accordingly.
- The amount of the positive payment adjustment and the payment entered should equal the amount the insurer is paying for patient B.
Other References:
Online Help
Insurance Retractions Involving Bulk Cheques
User's Guide
"Insurance Payment Retractions - Bulk Payments" - Practice Management Guide - Chapter 6 - Managing Financial Transactions
Product (s): ABELDent
Category: Financial
Classification: Public
Date Created: 15 September 2014
Created by: Brian Neale