Adjustment Codes are specific codes that aid in modifying a patient’s payment or insurance as part of accounting. It can be utilized to increase and decrease the payment or insurance balance, transfer from insurance to patient, or vice versa. Adjustment codes are essential to ensure the billing process is accurate by avoiding errors that could result in loss of revenue or billing disputes.
Let's give you a quick run-through about what adjustment codes are, the different types of adjustment codes, and how to apply them.
Topics Covered
Watch this video for a step-by-step explanation.
Navigate to the System Menu > select Practice Settings > Codes > Adjustment Codes.
There are mainly two types of Adjustments:
- Payment Adjustment
- Claim Adjustment
We will be mainly addressing Payment Adjustment which comprises Custom and System Codes.
Custom Codes: Custom Adjustment Codes are codes that can be set based on payment changes required. You can specify various attributes according to your needs while creating a custom code.
System Codes: System Adjustment Codes are used for system default operations and, thus cannot be modified.
Add a Custom Code
Select + Add Adjustment Code.
In the editable grid,
- Enter the name of the Code.
- Input a brief Description.
- Select the Action for the particular code.
- Check below for a detailed insight on actions.
- Select the Category whether Production or Collection.
- You can also apply it as an Amount or Percentage.
- Finally, select the Profile for which the desired code needs to be visible.
- Once completed, click Save.
Once the details appear in the grid.
- You can Activate and Deactivate based on your requirements.
More information on 'Action'
Use the following options under Action to customize codes to your practice's requirements.
- Patient Adj. On
- Patient Adj. Off
- Insurance Adj. On
- Insurance Adj. Off
- Transfer Bal. to Patient
- Transfer Bal. to Insurance
Practices can use this guide to gain insight into how to customize codes based on the practice's needs.