This adjustment amount is referring to the amount of the bill that East Adams Rural Healthcare has agreed not to charge you in agreement with your insurance company. Insurance companies, if contracted with the hospital, pay the hospital at a discount, or “negotiated,” contract rate. When the insurance company pays its portion, the discounted amount (adjustment) is taken off to show the true amount due from the patient (co-payment, co-insurance, and/or deductible). For example, a hospital may charge $3,000.00 for an MRI, but the allowed (negotiated rate) amount is $1,500.00. Below is an example of how patient responsibility is calculated:
Total Billed Amount:               $3,000.00
Contractual Adjustment:         -$1,500.00
Remaining Balance:                $1,500.00
Patient Deductible:                 $500.00
20% Co-Insurance                   $200.00 (20% of the $1,000.00 remaining after deductible)
Insurance Payment                 $800.00
Total patient responsibility:    $700.00