10/29/2026
Ever opened an insurance payment and found it came up short because of a completely different patient? It's called a recoupment. It happens when a payer decides it overpaid you earlier and takes the money back out of a future payment instead of sending a bill. Many contracts allow it, though many states limit how far back a payer can reach, often to a year or two, and the rules may not apply the same way to self-funded employer plans.
For your accounts receivable, the practical lesson is to treat these adjustments like any other balance. Tie each one to the original claim, make sure your team posts it correctly so patient accounts stay clean, and check whether the payer is actually right before accepting it. Dispute windows can be short, so a notice that sits in a pile for a month can cost you the chance to push back.
**This information is for educational purposes only and should not be considered tax, legal, or accounting advice. Consult your tax professional regarding your specific situation.
Many dentists and staff members are surprised the first time a payment is reduced because of an issue involving a different patient.