Payer policy · Definition
Underpayment: Definition
A claim paid at less than the contracted allowable, without a denial to signal the shortfall.
This is a short definition only. The full explanation lives on dermatology A/R recovery and underpayment review, which is the page to read if you are dealing with this on live claims.
Definition
Detecting them requires loading contracted rates and comparing every remittance line against the expected allowable.
Without that comparison, underpayments post as paid and close.
Return to the dermatology billing glossary.