Definitions
Health Insurance Terms
Benefit Penalty

Benefit Penalty

Definition:

An approach used by the insurance company to reduce payment on a claim when the patient or medical provider does not satisfy the rules of the health plan.

Application:

Benefit penalties are most frequent when a pre-authorization is not obtained, the payment on a claim can be reduced or denied.

Definition Categories

Want to learn more? Schedule a Consultation

Get started and schedule a no cost consultation with the Business Benefits Team to learn how your business can better manage your employee benefits.

Get Started