What is a Payer Contract?
When it comes to healthcare, payer contracts are signed by third parties to cover a person’s healthcare. When a company covers insurance for its employees it becomes a payer and must sign a contract. The contracts cover everything a payer could need in order to keep everything running smoothly. However, it’s also very hard to understand, which is a bit odd given how important it is.
There are several terms that both sides need to understand, with one of them being the allowed amount. The allowed amount is exactly what it sounds like, it’s the amount that the payer will give the healthcare provider for the covered services. The rate might force patients to pay the rest if the allowed amount doesn’t cover the full amount. Some managed care consultants can get involved to help out with the insurance.
For example, if your job covers $600 dollars of a $650 life insurance policy, then you would still have to pay the $50 dollars not covered by the insurance. Depending on whether you are using Medicare or a private healthcare firm, the rates might be different depending on what you do.
A clean claim is another term that can help keep the process moving smoothly. It’s a claim of information that is able to be processed without any additional information. So, having incomplete records, patient information, or other documentation can result in delays and denials that can cause problems all around for everyone. A clean claim allows for everything in the process to work effectively.
If the contracts are kept clean, then the payments and reimbursements are being made on time and the healthcare coverage for the patients are going as planned. If an employer offers to cover some or all of an employee’s health insurance, then they need to have an understanding of the contract and what it entails.