What may happen to an overpayment if a practice continues treating a patient?

When a practice continues to treat a patient after an overpayment has been identified, the typical course of action is to apply the overpaid amount as a credit towards future services. This approach allows the provider to utilize the excess amount in a manner that benefits both the patient and the practice, as it seamlessly integrates the overpayment into the continuing treatment process.

Applying the overpayment as a credit helps ensure the provider maintains accurate and transparent billing for future services rendered. It also avoids the administrative burden linked with issuing refunds for overpayments, which may not always be feasible if the practice intends to continue treating the patient.

In contrast, some of the other options may not be suitable or standard practice in a medical billing context. For instance, writing off the overpayment might not be responsible since the funds still belong to the insurer or the patient, and ignoring it entirely circumvents proper accounting and ethical billing practices. Refunding the amount immediately could disrupt the continuity of care and complicate future billing arrangements. Therefore, applying the overpayment as a credit is a common and appropriate solution.