This new Setup Screen feature, ERN Auto Writeoff, can be utilized to automatically write off an amount specifically identified within an electronic remittance advice (ERA) by a Claim Adjustment Reason Code. Currently, this is most useful for use because of the new 2% Medicare sequestration deductions that cannot be billed to the patient and needs to be written off. This feature will perform the write off for you automatically, and is reflected as usual in the history of the patient’s service line in the ledger.
What is “Sequestration?”
On Monday, April 1, a 2 percent across-the-board cut in Medicare provider payments took effect. All Medicare physician claims with a date of service on or after April 1 are subject to a 2 percent payment cut. The cut will be applied to the payment itself, not the underlying “allowed charge” in the Medicare fee schedule.
As a result, beneficiary copayments and deductibles will not change. In other words, the 2 percent cut is imposed only on the 80 percent of the allowed charge that a participating physician would receive directly from Medicare. The 20 percent copayment amount (and any deductible) that the physician collects from the patient will be based on the full allowed charge amount. The patient cannot be billed for the sequestered amount. In effect, the sequestered amount is to be “written off” by the provider.
Here is an example of the amount sequestered from a payment:
(Click Image to Enlarge)
(Click Image to Enlarge)
Prescriptions now synced to Web services
All patient prescriptions, allergies and medications are now synchronized with corresponding Web services.
