What an "adjustment" or "contractual discount" is
Why the amount you owe is often much lower than the original charge.
Providers set a list price for each service. When they are in your insurer's network, they usually agree to accept a lower price. The difference shows up on your bill or EOB as an adjustment, write-off or contractual discount.
That lower agreed price is often called the allowed amount. Your deductible, copay and coinsurance are usually based on it, not on the original charge.
If your bill shows the full original charge with no adjustment, but your EOB shows one, that is worth asking the billing office about. It may simply mean the bill was printed before the claim was processed.
Have a bill and an EOB that don't match?
Upload both and the Detective will compare them line by line and explain any potential discrepancies in plain English.
Compare my bill and EOBMore guides
- How to read a medical bill
- Deductible, copay and coinsurance in plain English
- Why asking for an itemized statement helps
- What to do when a claim is denied
- All guides
Important: The Medical Bill Detective provides informational assistance based on the documents you provide. It does not provide medical, legal, insurance, or financial advice and does not determine whether a bill is legally valid, fraudulent, or incorrect. Potential discrepancies should be verified with your healthcare provider and/or insurance company.