Guidelines for Credit Balances and Refunds
When an account has a credit balance, determine the reason:
- Posting error
- Overpayment by third-party payer
- Overpayment by patient (guarantor)
If the reason is an overpayment, process the refund procedure to the appropriate party in a timely manner.
The recommended procedure is as follows:
- Complete a refund request form (see sample below).
- Attach a copy of the explanation of benefits (EOB).
- Submit refund request form to business office manager for review.
- If approved, send request and all attachments to the administrator for approval.
- Issue a facility check to the appropriate payer.
- Post refund information to the appropriate patient account.
Note: It is advisable for credit balances be corrected/refunded within 30 days.