What’s the Difference Between Insurance Recoupment & Refund in Medical Billing?
What’s the Difference Between Insurance Recoupment & Refund in Medical Billing? By Texas Hill Country Consultants Understanding Recoupment and Refund in Medical Billing In the ever-changing world of medical billing and revenue cycle management , even small misunderstandings can lead to significant financial losses. Two terms that often cause confusion are insurance recoupment and refund . While both involve returning money, the process, reason, and initiator differ greatly. At Texas Hill Country Consultants , we help healthcare providers understand these billing terms so they can stay compliant, protect revenue, and maintain strong payer relationships. What Is Insurance Recoupment? Definition: Insurance recoupment occurs when a payer (insurance company) determines after paying a claim that they have overpaid and need to take the money back. Common Causes of Recoupment: Overpayment errors due to incorrect coding or charges Coordination of Benefits (COB) where anoth...