The allowed amount is the total a payer considers payable for a service: the plan's payment plus the patient's share. The difference between the billed charge and the allowed amount is usually a contractual adjustment for in-network providers.
Related terms
- Underpayment
- A payment lower than the amount the payer's contract says it owes.
- Net collection rate
- How much of the money you were entitled to collect you actually collected.
- EOB (explanation of benefits)
- A statement from the insurer explaining how a claim was processed.