Question

The difference between the amount billed to workers’ compensation and the amount paid would be posted to the patient’s ledger as a:

A) Credit
B) Debit
C) Revenue
D) Discount

Answer 1

The difference between the amount billed to workers’ compensation and the amount paid would be posted to the patient’s ledger as a Credit.

Step-by-step explanation:

The difference between the amount billed to workers’ compensation and the amount paid would be posted to the patient’s ledger as a Credit.

In accounting terms, when the billed amount is higher than the amount paid by workers’ compensation, the remainder is not typically billed to the patient but is written off as a discount provided due to the workers' compensation agreement. This reflects the contractual adjustment agreed upon between the healthcare provider and the workers’ compensation plan.