health care provider adjustments

seajill · #1 (**permalink**) 02-13-2014, 11:51 AM

I have a small mental health private practice for which I bill insurance companies. The insurance companies do not reimburse at the rate I bill for and I am contractually obligated to accept their reimbursement rate and not bill the client for the difference. If I bill the insurance company 145.00 for a service, they reimburse me about 80.00 and the difference is shown on the Explanation of Benefits section as a 'Provider Adjustment'. Is this provider adjustment considered a loss? How would I document this on my tax return? I've been using Turbo Tax to prepare my return (my returns in general are pretty basic) but don't know how or if I can document this.

Wnhough · #2 (**permalink**) 02-14-2014, 01:34 AM

Quote:

Originally Posted by seajill

#1; The insurance companies do not reimburse at the rate I bill for and I am contractually obligated to accept their reimbursement rate and not bill the client for the difference. If I bill the insurance company 145.00 for a service, they reimburse me about 80.00 and the difference is shown on the Explanation of Benefits section as a 'Provider Adjustment'. Is this provider adjustment considered a loss?

#2; How would I document this on my tax return? I've been using Turbo Tax to prepare my return (my returns in general are pretty basic) but don't know how or if I can document this.

#1;aslongas you are contractually obligated to accept their reimbursement rate and not bill the client for the difference, I guess I do not think you can claim the unreimbursed bills on your return,. You need to contact the IRS for more info in detail

#2;as mentioned above