What is the difference between billed charges and payer-allowed amounts?

What is the difference between billed charges and payer-allowed amounts?

• A. Billed charges are the listing price; the allowed amount is what the payer actually pays after adjustments.
• B. Billed charges are the discounted price shown to patients; the allowed amount is the listing price.
• C. Billed charges are the negotiated rate; the allowed amount is higher than billed.
• D. Billed charges equal the payment by the patient.

Answer: (B)