Where would insurance or government program payments appear on the statement of account in Pennsylvania?

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

Disclaimer: This is for general informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.

Detailed Answer

A statement of account—often sent after you receive medical or professional services—breaks down what you owe after third-party payments. In Pennsylvania, providers follow industry best practices and state transparency requirements (see 40 Pa. Cons. Stat. § 991.1703) to show exactly how insurance and government program payments affect your balance.

On a typical statement you’ll see these key columns or sections:

  • Charges: The full amount billed for each service or item.
  • Payments & Adjustments: Credits applied to your account, including payments by insurance companies or government plans.
  • Balance Due: The remaining amount you’re responsible for.

Insurance payments and government program reimbursements (like Medicare or Medicaid) usually appear in the Payments & Adjustments section. They often show as two line items:

  1. Insurance Payment: The actual amount your insurer remitted to the provider.
  2. Contractual Allowance or Adjustment: The difference between the provider’s full charge and the negotiated rate the insurer or government program allows. This amount is not billed to you.

For example, if a provider’s full charge is $200, and Medicare pays $120, you’ll see:

  • Charges: $200
  • Medicare Payment: –$120
  • Medicare Adjustment: –$50
  • Balance Due: $30

This breakdown ensures you only pay $30—the portion not covered by the program.

To review your insurer’s Explanation of Benefits (EOB) and confirm these numbers, visit the Pennsylvania Insurance Department’s resource: EOB Guidance. Providers often mirror that EOB detail on your statement of account.

Helpful Hints

  • Check the Payments & Adjustments column for all third-party credits.
  • Look for terms like “allowance,” “write-off,” or “discount”—these are not your out-of-pocket costs.
  • Compare your statement to the insurer’s EOB to spot discrepancies.
  • Contact the provider’s billing office if you see a payment or adjustment you don’t recognize.
  • Save your statements and EOBs for tax or reimbursement purposes.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.