Understanding Insurance Schedule Methods and Method Components
An insurance schedule method is a specific benefit for a specific item type and is composed of various method components. Examples of method components include Discount Type and Allowance Type. The calculation types you select for a method’s components determine how the method functions when you apply the insurance plan to a patient’s order in AcuityLogic POS. Although each method may have multiple method components, you may not be required to select an amount for each component.
This section describes the methods that you can apply to item types when you are creating an insurance schedule.
Topics include the following:
This table lists the following:
- All the methods that you can apply to item types when creating insurance schedules. Not all methods are available for each insurance plan.
- All the components available for each method. For details, see Insurance Schedule Method Components.
- All the item types to which each method can be applied. Not all methods are available for each item type. A method you set up for an item type applies only to that item type, not to any other products or services.
Method Name | Use This Method When . . . | Method Components | Item Types With This Method |
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Accessory Discount |
The plan offers a discount toward accessories. |
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The plan requires that you apply the allowance and then apply a discount to the retail price of an item. This is based on the contractual discount indicated, and it is not eligible for any additional sales or promotional discounts. |
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The plan requires that you apply the allowance and then apply a discount. Typically the plan specifies what the discount is, but the plan could indicate that a sale or promotional discount can be applied if that discount is higher than the contractual discount. When you use this method, the highest discount is calculated. |
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The plan has an allowance but does not allow any other discounts to be applied. |
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Allowance/Exam (Deduct Exam Pay) |
The plan calculates the final allowance by subtracting the contact lens exam and routine exam receivables from the contact lens allowance. For example, if the patient’s allowance is $100 and the total exam receivable is $75, the final allowance is $25. |
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Allowance/Exam (Deduct Exam Retail) |
The plan calculates the final allowance by subtracting the total retail price of the contact lens exam and the routine exam from the contact lens allowance. For example, if the patient’s allowance is $100 and the total retail price of the patient’s exams are $80, the final allowance is $20. |
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The plan offers an allowance for the item type. The allowance can cover a full item type, or only a specific dollar amount or percentage of an item type. You can specify a copay and a discount as well. Sometimes the same result can be achieved by using this method or the Discount Item method. The difference is how the write-off is indicated on reports. On reports, this method indicates that a write-off is a contractual write-off, while the Discount Item method indicates that a write-off is a discount. |
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Allow Eyeglass Lens Material Based on Rx |
The plan allows premium lens materials (such as polycarbonate or high-index plastic) at no added cost when the combined Rx power from either eye meets a minimum value. Combined Rx Power equals the sum of the Sphere and Cylinder values.
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Allow Office Additional Discount |
This method is currently in development and has no functionality. |
N/A |
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Allow Package Discount |
The plan allows you to apply a package discount and then apply an allowance on the remaining balance. |
N/A |
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Allow Photochromic for Minor |
The plan allows a minor to purchase eyeglasses with photochromic lenses. |
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Allow Polycarbonate by Age |
Polycarbonate lenses are fully covered by the plan when the patient’s age and relationship to subscriber satisfy the set criteria. |
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Allow Safety Frames |
The plan offers an allowance for safety frames. |
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Allow Transitions for Minor |
The plan allows a minor to purchase eyeglasses with Transitions lenses. |
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Apply Medicaid Copay Reduction For Same Day Service |
A Medicaid plan waives the copay for an exam when it is sold with eyewear. |
N/A |
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Benefit By CPT Code |
The plan (usually a Medicaid plan) offers benefits based on the CPT code of the lens base type. |
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CL Allowance -> Fitting |
The plan applies the allowance to contact lenses first, and then applies any remaining balance of the allowance to the contact lens fitting. |
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Covered Item/No Receivable |
The plan offers an allowance for an item type but does not reimburse the provider for that item type. For example, a material upgrade for glass is often allowed in full but not reimbursed. |
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The plan requires that you apply a discount to the retail price of an item and then apply the allowance. This is based on the contractual discount indicated and the item is not eligible for additional sales or promotional discounts. |
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Discount/Allow Entire Lens |
The plan offers a discount and an allowance on the entire lens. |
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The plan requires that you apply a discount to the retail price of an item and then apply the allowance. Typically the plan specifies what the discount is, but the plan could indicate that a sale or promotional discount can be applied if that discount is higher than the contractual discount. When you use this method, the highest discount is calculated. |
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The plan offers a discount on the base lens. |
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Discount Entire Lens |
The plan offers a discount on the entire lens. |
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The plan requires that an item be discounted. Sometimes the same result can be achieved by using this method or the Allowance Item method. The difference is how the write-off is indicated on reports. On reports, this method indicates that a write-off is a discount, while the Allowance Item method indicates that a write-off is a contractual write-off. |
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The plan first applies a discount and then applies the allowance. |
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Dispensing Codes and Rule Setup |
The plan has dispensing fees. After this rule is set up and dispensing fees are created as products in AcuityLogic, dispensing fees are added to patient orders when you apply the insurance plan to an order. Depending on which option you select for the Dispensing Rule attribute, the dispensing fees either replace all the items on the order or are added to the order. You must fill in all the fields for the dispensing codes. If you are not using one of the dispensing codes, you can copy another dispensing code into that code’s field. |
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This method is currently in development and has no functionality. |
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Display Contact Lens Message |
The message you type appears in a dialog box when you apply the insurance plan to an order when pricing contact lenses in AcuityLogic POS. |
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Display EyeGlass Message |
The message you type appears in a dialog box when you apply the insurance plan to an order when pricing eyeglasses in AcuityLogic POS. |
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Display Generic Message |
The message you type appears in a dialog box when you apply the insurance plan to an order when pricing any item in AcuityLogic POS. |
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EyeMed Annual Plan Limit |
The EyeMed plan specifies the following:
When setting up the items in the insurance schedule, set the allowance to retail and the receivable to your EyeMed contracted reimbursement rate for the item. Set the Copay to percent of receivable and enter the coinsurance percentage for the plan. |
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Find Previous CL Fitting Fees |
The plan allows you to search for previous contact lens fitting fees. |
N/A |
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Fitting -> CL Allowance |
The plan applies the allowance to a contact lens fitting first and then applies any remaining balance of the allowance to contact lenses. |
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Frame Overage Rule |
The plan |
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Frame Wholesale Allowance |
The plan requires that you apply the allowance to the frame based on the wholesale cost of the frame. You can apply additional discounts after the allowance. |
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Frame Wholesale Discount |
The plan requires that you discount the frame based on the wholesale cost of the frame. |
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Lens/Allowance |
The plan specifies an allowance for the base lens (SV, BF, TF). Some plans may also have an allowance for progressives. Lenses are considered plastic unless otherwise specified. |
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Lens/Frames Allowance |
The plan specifies an allowance for frame and lenses when both are purchased together. |
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Material Allowance |
The plan offers a total allowance for materials (such as contact lenses and frames) but does not offer an allowance for exams. |
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Material/Lens Combined Allowance |
The plan specifies a combined allowance for materials and lenses. |
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Material Copay |
The plan offers one copay for all materials (although the copay may exclude contact lenses). |
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Maximum Allowance Limit |
The plan specifies a maximum allowance for specific item types. |
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Medicaid Frames |
The plan offers a special allowance or discount for Medicaid frames. |
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Medicaid Modifier Rule |
The plan requires special modifiers for Medicaid eyeglass replacements and prescription changes. |
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No Copay For Minor |
The plan specifies that patients who are a certain age or younger do not have a copay for specific product or service types. |
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No Discount On License Frame |
The plan does not allow discounts on licensed frames. |
N/A |
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No Exam Copay for High Prescriptions |
The plan specifies that a patient does not have an exam copay when his or her prescription is over a certain diopter power. For example, the plan specifies that patients don’t pay copays when their prescription is over +/- 8.00. |
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Not Allowed |
The plan does not allow the order to be processed when a patient attempts to purchase a specific item. The patient must select another item. |
N/A |
All Item Types (may not always be available for Special Option) |
Not Covered Charge Back Rule |
The plan charges a charge-back for noncovered lenses and lens options. This method functions only when the Not Covered Item Discount (Lens & Options) method is also applied to the plan. This example explains how your charge-back and net sale are calculated using the Not Covered Charge Back Rule. An example noncovered coating retails for $100. The insurance plan gives a 20% discount ($20) to patients for noncovered coatings, so the patient pays $80. The insurance plan then charges you a 10% charge-back ($8), so your net sale on this coating is $72 ($100-$20-$8). |
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Not Covered Item Discount (Lens & Options) |
The plan does not offer any benefits for lenses but allows you to apply a discount to the item. |
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Not Covered with Total/Material Allowance |
The plan requires that the specified item group or item be excluded from Material Allowance or Total Allowance special option calculations. |
N/A |
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Override Base Lens Discount |
The plan allows you to override the benefits calculation for a base lens with the discount set up for a style addon. |
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Override Lens Base Allowance |
The plan allows you to override the price of a base lens if the patient upgrades to a premium lens so that the patient is charged for the premium lens. |
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Plano Lenses Not Allowed |
The plan does not allow plano lenses. |
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Senior Citizen Discount Rule |
The plan offers a discount to senior citizens. |
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Special Program |
The plan offers a special program for the item type. |
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Spectera CL Fit without Contacts |
The plan provides coverage towards a contact lens fitting fee without a contact lens purchase if the fit is for a Spectera formulary contact lens. You can use this method to set up Spectera insurance schedules so that AcuityLogic POS users are prompted when insurance is applied to an order that includes a contact lens fitting fee without a contact lens purchase. If users indicate that the fitting fee is for a formulary contact lens, the system includes the allowance, receivable, and copay amounts set up in its benefits calculations. If users indicate that the fitting fee is not for a formulary contact lens, the system does not apply coverage for the service. |
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Spectera Contact Lens Only |
The Spectera plan offers specific allowances for the fitting fee for formulary (covered) contact lenses. |
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Spectera Contact Lens Receivable |
The Spectera plan offers specific allowances on contact lenses. Enter receivable percentages for either allowance or retail. |
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Spectera Non Formulary Contact Lens Only |
The Spectera plan offers specific allowances on nonformulary (not covered) contact lenses. |
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Sunglasses or Sportvision Discount |
The plan offers a discount for sunglasses or eyewear for sports. |
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Total Allowance |
The plan offers a total allowance toward everything, including exams and materials. |
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Total Allowance Includes Exam and Contact Lens |
The plan offers a total allowance toward exams and contact lenses only. |
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Total Allowance Includes Exam, CL, & Fit |
The plan offers a total allowance toward exams, contact lenses, and contact lens fittings only. |
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Total Allowance with only Base Lens |
The plan offers an allowance for base lenses and does not cover upgrades to premium products. |
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Valid Labs Rule |
The plan requires that orders are made at specific labs. |
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VSP Plan Requirements |
The VSP plan requires that lenses are made at specific labs. |
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Insurance Schedule Method Components
This table describes all the method components and calculation types that you can apply to methods when creating insurance schedules.
Not all components are available for each method. Although each method may have multiple components, you may not be required to select an amount for each component. Record an amount only for the method components applicable to the insurance plan’s requirements.
All method components and calculation types you set up for a method apply only to the item type that the method is for, not to any other products or services. See Insurance Schedule Methods.
Method Component | Calculation Types |
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% Charge Back Fee |
The percentage of the item’s price that you pay to the insurance carrier as the charge-back fee. |
% Covered of Allowance |
Leave this attribute blank. It has no functionality. |
Allowance Limit |
The patient’s maximum allowance. |
Allowance Type |
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Base Lens |
The base lens to which the method applies. |
BF Dispensing Code |
Type the dispensing code for bifocal lenses. |
Charge Back Amount |
The dollar amount of the charge-back. |
Contact Lens Required |
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Copay Type |
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Covered CL Type |
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Covered Fitting Fees |
The maximum dollar amount of fitting fees that the plan covers. |
Discount Rule |
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Discount Type |
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Discounted Retail |
The maximum total retail dollar amount to which the discount applies. For example, if the plan offers a 15% discount and you set the discounted retail to $100 but the patient purchases a $200 item, the discount applies only to the first $100 of the purchase, so the total discount is $15. |
Dispensing Rule |
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Extra % Patient Pays Of Diff |
Leave this attribute blank. It has no functionality. |
Extra % Patient Pays Of Wholesale |
Leave this attribute blank. It has no functionality. |
Eye Glass Message |
Type the message to display in a dialog box when you apply the insurance plan to an order when pricing eyeglasses in AcuityLogic POS. |
Frame Only Order Type Dispensing Code |
Type the dispensing code for frame-only orders. |
Include Eyeglass Extras |
The material allowance applies to coatings whether you select Yes or No. If you do not want the material allowance to apply to coatings, set up the Total Allowance and Not Covered with Total/Material Allowance special option methods for the Coating item type. |
Include Fitting Fee |
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Lenses Only Order Type Dispensing Code |
Type the dispensing code for lenses-only orders. |
Limit Type |
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Material Type |
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Maximum Retail Limit |
The maximum total retail dollar amount to which the discount applies. For example, if the plan offers a 15% discount and you set the maximum retail limit to $100 but the patient purchases a $200 item, the discount applies only to the first $100 of the purchase, so the total discount is $15. |
Message (Display Contact Lens Message) |
Type the message to display in a dialog box when you apply the insurance plan to an order when pricing contact lenses in AcuityLogic POS. |
Message (Display Generic Message) |
Type the message to display in a dialog box when you apply the insurance plan to an order when pricing any item in AcuityLogic POS. |
Minor Age Limit |
Type the maximum age of a patient who is eligible for the method. |
Prescription Over |
Type the starting diopter power for which the exam copay is waived. For example, if you type 8.00, a patient with a prescription over +/- 8.00 has no exam copay. |
PG Dispensing Code |
Type the dispensing code for progressive lenses. |
Receivable for Covered Disposable (Per Box) |
Type the receivable for each box of covered disposable contact lenses. |
Receivable for Covered Planned Replacement (Per Box) |
Type the receivable for each box of covered planned replacement contact lenses. |
Receivable Type |
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Senior Citizen Age |
Type the minimum age of a patient who is eligible for the method. |
Service Type |
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Special Program Name |
Type the name of the special program. |
TF Dispensing Code |
Type the dispensing code for trifocal lenses. |
SV Dispensing Code |
Type the dispensing code for single-vision lenses. |
Valid Allowance |
Leave this attribute blank. It has no functionality. |
VSP Lab Rule |
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VSP Network Schedule |
The VSP network schedule to which the lab rule applies. |