About Adjustment Codes
The Kareo system lets customers define their own custom adjustment codes to identify specific types of adjustments made to payments received from insurance companies and patients. However, part of the requirements for coordination of benefits is that all of the payment information from one payer (i.e., primary insurance payers) must be sent along with the electronic claim that is sent to other payers (i.e., secondary insurance payers). There is a universal industry standard list of "adjustment reasons" that are reported back on ERA's and that must be sent with the coordination of benefits information to secondary payers. These "adjustment reasons" are set forth by industry specs.
When our customers manually post payments, they typically use their own custom "adjustment codes" to identify adjustments. However, when this information is posted for the primary and then packaged up with the coordination of benefits information and then sent electronically to the secondary, it must be translated into the industry standard "adjustment reason."
In this task you can enter your custom adjustment code, your custom description, and then select the HIPAA Adjustment Reason that corresponds to the custom code used by the customer. Kareo will then automatically link the customer's code to the appropriate HIPAA Adjustment Reason when submitting claims.
For more information about managing adjustment codes, refer to the following help topics:
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