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Showing posts from May, 2025

Decoding the Mystery: What Are Non-Covered Services in Medical Billing?

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Decoding the Mystery: What Are Non-Covered Services in Medical Billing? Navigating the world of medical billing can feel like deciphering a secret code. One term that frequently pops up and causes confusion is "non-covered service." But what exactly are non-covered services, and why are they so important to understand? Texas Hill Country Consultants is here to break it down. Simply put, a non-covered service is a medical procedure, test, or supply that your health insurance plan doesn't pay for. This doesn't necessarily mean the service isn't medically necessary; it simply means it's not included within the scope of your specific policy. Several factors can lead to a service being classified as non-covered: 1. Plan Exclusions:   Every health insurance plan has specific exclusions, which are services that are explicitly not covered under any circumstances. Common examples include: Cosmetic procedures: While some reconstructive surgeries are covered aft...

Decoding Offset Payments in Accounts Receivable: A Texas Hill Country Consultants Guide

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Decoding Offset Payments in Accounts Receivable: A Texas Hill Country Consultants Guide Managing accounts receivable (AR) effectively is crucial for any business's cash flow. One aspect of AR management that often causes confusion is understanding offset payments . At Texas Hill Country Consultants , we frequently encounter questions about this process, so we've put together this guide to help you navigate the complexities of offset payments. What are Offset Payments? In simple terms, an offset payment, also known as a credit memo offset or a contra entry, is a reduction in the amount owed by a customer on a specific invoice due to a corresponding credit or debit owed to that customer by your company. Instead of issuing a separate payment to the customer for the credit, your business essentially “offsets” or reduces the outstanding invoice amount. Think of it like this: your company sells $500 worth of goods to Customer A. Later, Customer A returns a damaged item worth $100. I...