What Is Credit Balance in Medical Billing?
                     What Is Credit 
Balance in 
Medical Billing?
• The complex process of medical billing is well known 
in various practices and medical centers, but there’s 
a specific aspect that can be incredibly convoluted, 
which is the concept of a credit balance.
• As the owner of a medical practice or 
healthcare physician, you’ll need to know what 
credit balances are in the context of medical billing, 
because they can impact a range of financial 
transactions and need to be resolved as quickly as 
possible.
• So, in this article, we will explore the answer to the 
question ‘What is credit balance’ in terms of medical 
billing, why credit balances happen, and the best 
ways you can resolve them quickly if they have 
occurred in your practice or medical center.
What Does Credit Balance 
Mean in Medical Billing?
• First off, credit balance means that an amount of 
money is owed, either to one of your patients or 
an insurance company from your medical practice 
– it’s due to payments that exceed the cost of the 
treatment or medical service rendered, and they 
need to be resolved by your practice.
• Of course, there are a couple of reasons credit 
balances can happen; the insurance company 
might make an overpayment (more than the 
allowed amount) to your medical practice or 
    medical center, or a patient might pay more than 
the cost of the charges owed. Any excessive 
amounts can become a credit balance.
• Now, in other scenarios, such as when 
the insurance coverage of a patient changes, 
credit balances can also happen, and it leads to a 
retroactive adjustment of claims that were 
previously paid. In cases where a new insurance 
plan lowers the cost paid for a previous claim, 
there will be a difference in the reduced payment 
and the original one. And this difference is the 
credit balance.
Credit Balance in Medical Billing: 
Consequences to Consider
• In terms of credit balances in medical billing, there 
are consequences to consider, not just for your 
patients, but for you as a healthcare provider.
• To read our full blog, click here: https
://pmninc.biz/what-is-credit-balance-in-medical-billin
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