Insurance and network
Write-off
A write-off is the part of a fee that a practice does not collect, usually because of a network contract, a discount or an uncollectible balance.
A write-off is an accounting entry that removes a balance the practice will not collect. The American Dental Association explains that, for a network plan, the difference between the dentist's full fee and the sum of all dental benefit plan payments and patient payments is the amount of the write-off.
The ADA also says write-offs should not be posted until all plans have paid. Posting too soon can lead to a wrong credit on a patient's balance.
Write-offs are one reason that net production is lower than gross production. See reimbursement rate and in-network. An accountant can advise on how to record them.