Reminder: Identifying Adjustments That Create Negative Balances

The Department of Health Care Services (DHCS) reminds providers to review prior Remittance Advice Details (RAD) forms in order to identify adjustments that create negative balances and can turn into an Accounts Receivable (A/R). By locating the negative balance associated with an A/R, providers can identify the specific claim details, reconcile their patient accounts and, if necessary, follow up to dispute the adjustment. A negative balance is created when an adjustment or void is initiated against a previously paid claim. Providers can easily track negative balances by reviewing the RAD to identify any adjustments and locating the negative balance on the last page if positive claims do not cover adjustments.