Question

Douglas Jackson was seen in the doctor's office today to remove a mole from his left cheek. Total charges today are $377. The allowed amount is $217. What is the discount amount? How much will the carrier pay? What is the write-off amount?

A. Discount Amount: $160, Carrier Payment: $217, Write-off Amount: $160
B. Discount Amount: $160, Carrier Payment: $217, Write-off Amount: $377
C. Discount Amount: $377, Carrier Payment: $160, Write-off Amount: $217
D. Discount Amount: $217, Carrier Payment: $160, Write-off Amount: $377

Answer 1

The discount amount is $160, the carrier payment is $217, and the write-off amount is $160. These are calculated based on the difference between the total charges and the allowed amount. Option a.

Step-by-step explanation:

The question involves calculating the discount amount, carrier payment, and the write-off amount for a medical service. The total charge for the service was $377, but the allowed amount for the service is $217. Therefore, the discount amount is the difference between the total charged and the allowed amount, which is $377 - $217 = $160. The carrier will pay the allowed amount of $217. The write-off amount is typically the same as the discount amount, as it represents the portion of the charge that the medical provider agrees not to collect, which is $160. Option a.