Mrs. Garcia came to the Obstetrics Department of Monroe Health System pregnant and ready to deliver her first baby. She has health insurance coverage with United Healthcare provided by her employer. United has a contract with Monroe Health System, that gives United Healthcare a 20% discount from Monroe's full established rates. If Monroe Health System's rate for normal newborn delivery, including mother and baby, is $5,700, what is the amount of the contractual allowance that must be recorded related to the delivery of Mrs. Garcia's baby?

Answer rating: 100% (QA)

The contractual allowance is the difference between the full established rate and the discounted rate agreed upon between United Healthcare and Monroe Health System In this case the discount ... View the full answer