I found a very interesting blog post from Medical Billing Resources the other day that offered an insightful introduction to the issues medical billers face when dealing with credit balances.

“A significant number of the credit balances resulting from a date of service are created as a result of the complicated billing and payment process, which often involves three or more parties, providers, patients, and payers. As transactions overlap each other, and balances are transferred from one entity to another, there is great opportunity for thousands of dollars in credit balances to wind up on the books. As time goes on, it is increasingly difficult to determine what is owed to whom, and the burden of sorting this out falls on the providers. Providers who do not untangle this web of credit balances in a timely fashion leave themselves open to the risk of an audit.” 

To read the full article click here.