Detailed Answer
When you receive a statement of account from a service provider or creditor in Arizona—whether it’s medical services, legal fees, or other professional charges—any payment made by an insurance company or a government program will appear in the payments or credits section of that statement. Arizona law requires clear itemization of all debits and credits when a written request for an itemized statement is made by the debtor (see Arizona Revised Statutes § 12-565: https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/12/00565.htm).
On a typical statement of account you’ll see two main columns or sections:
- Charges: Lists all services rendered and their full billed amounts.
- Payments/Credits Applied: Lists any payments received, including:
- Insurance payments (private health insurers, auto insurers, liability carriers).
- Government program payments (Medicare, Medicaid under Title 36 of the Arizona Revised Statutes: https://www.azleg.gov/arsDetail/?title=36).
Providers often use sub-headings such as “Insurance Adjustment,” “Insurance Payment,” or “Third-Party Payment” to distinguish these credits. They will include the date of payment, the payor’s name, and the amount applied. After listing all charges and credits, the statement calculates the net balance due by subtracting total payments and adjustments from total charges.
If you’re reviewing a legal creditor’s detailed statement following a written demand, Arizona law under ARS § 12-565 presumes the itemized account is accurate unless you file a timely objection. That statement must show each payment, including those from insurers or government programs, with date, amount, and payor identity.
Key Takeaways:
- Insurance and government payments always appear as credits.
- Look under “Payments,” “Credits Applied,” or similar headings.
- Statements must list date, amount, and payor name when itemized.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice about your specific situation.
Helpful Hints
- Review each line item carefully—payments reduce your total owed.
- If you spot an unrecognized payment, ask the provider for an Explanation of Benefits (EOB).
- Keep copies of all EOBs and remittance advices for your records.
- Under ARS § 20-1633, health insurers must process claims and remit payments within 45 days—follow up if a payment is late.
- If you need an itemized statement, send a written request to trigger statutory itemization requirements.