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Co-Pays and Patient Payments

Understand the difference between co-pays and patient payments, how they are allocated, and how PatientStudio automates payment application

Updated over 5 months ago

Co-Payments vs. Patient Payments

PatientStudio distinguishes between co-payments and patient payments, each with unique rules for allocation and processing.


Co-Payments

Definition: Payments allocated to a specific date of service (e.g., commercial insurance co-pay, Medicare co-insurance).

Application:

  • Processed via the Calendar or Financials tab.

  • Appears as a credit on the claim.

  • Can be used for co-pays, co-insurance, self-pay, or prepayment of deductibles.

  • Only one co-pay can be collected per date of service.


Patient Payments

Definition: Payments applied to a patient’s total balance, distributed across the oldest unpaid claims.

Application:

  • Processed via the Financials tab.

  • A payment is applied to the earliest outstanding balance across multiple dates of service.

  • Overpayments remain as a credit for future claims.

Key Differences from Co-Pays:

  • Unlike co-pays, payments are not tied to a specific date of service.

  • Payments are applied to any outstanding balance across multiple claims.


Payment Application Rules

PatientStudio automatically applies payments to claims and open balances.

  1. Co-pays are applied first to any open balance for the specific date of service.

  2. Payments are then applied to the oldest unpaid dates of service until the payment is fully used.

  3. Older payments are applied first before newer payments. Example: the patient has a credit.

This automated process ensures accurate balance tracking while prioritizing the correct payments based on claim status.


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