Which statement correctly describes the Expected Amount?

• A. The amount sent by the payer.
• B. The total amount allowed as calculated by your contract.
• C. The amount from prior-year contracts.
• D. The amount the patient has to pay.

Answer: (B)

Expected Amount means the total amount the insurer has contractually allowed for a given service. This is set by the payer contract and represents the amount the payer is expected to cover for that service, based on the negotiated rate. It’s not the actual payment you receive (that would be the payer’s posted payment), it’s not pulled from prior-year contracts, and it isn’t the patient’s responsibility—those cost-sharing amounts come after applying the contract allowance. So the statement that the Expected Amount is the total amount allowed as calculated by your contract is the best description.