Free AAMA Certified Medical Assistant (CMA) Practice Question

A contractual adjustment is an agreement between the healthcare provider and the insurance payer that often results in a reduced rate for services rendered. This reduction is removed from the overall charged amount and does not affect the patient’s deductible, which is the out-of-pocket amount the patient is responsible for before insurance begins paying. As the contractual adjustment lowers the charge amount that the insurance covers, it does not increase the deductible responsibility of the patient.