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Thrizer Reimbursement Reasoning Rules

Last Updated: 2026-03-23 Status: Canonical
Purpose: Use this file when the question requires deterministic calculation or explanation of out-of-network reimbursement amounts based on known inputs. This includes:
  • Calculating expected reimbursement for a claim
  • Explaining why reimbursement is $0 vs partial vs full
  • Determining how deductible affects reimbursement
  • Breaking down client responsibility vs insurer payment
  • Classifying claim outcomes (reimbursed, applied to deductible, denied)
  • Explaining the impact of allowed amount vs provider fee
This file should be used only when all required inputs are present or can be reasonably assumed:
  • provider_fee
  • allowed_amount
  • deductible_remaining
  • coinsurance_client_percent
  • claim_status
Do not use this file for:
  • Questions about how claims are submitted, processed, or tracked
  • Questions about product behavior, UX, or system workflows
  • Questions about insurer policies, approval criteria, or allowed amount determination
  • Questions about timing of reimbursement or payments
If a question depends on insurer decisions or missing inputs, treat those as external, non-deterministic factors and do not infer beyond the rules defined here.

Normalized Inputs

All reimbursement reasoning must use the following inputs:
  • provider_fee
  • allowed_amount
  • deductible_remaining
  • coinsurance_client_percent
  • claim_status (approved | denied)

Core Calculation Variables

Provider Fee

Definition: The therapist’s full session rate.

Allowed Amount

Definition: The maximum amount recognized by the insurer for the service. Rule: Reimbursement calculations are always based on the lower of the allowed_amount or provider_fee.

Coinsurance (Client Share)

Definition: coinsurance_client_percent represents the percentage of allowed_amount the client is responsible for after deductible. Derived: insurer_share_percent = 1 − coinsurance_client_percent

Reimbursement Determination Rules

Rule 1 — Claim Denied

Condition: claim_status = denied Outcome:
  • reimbursement = 0
  • deductible_applied = 0

Rule 2 — Pre-Deductible (Full)

Condition: claim_status = approved
AND deductible_remaining ≥ allowed_amount
Outcome:
  • reimbursement = 0
  • deductible_applied = allowed_amount

Rule 3 — Partial Deductible

Condition: claim_status = approved
AND deductible_remaining > 0
AND deductible_remaining < allowed_amount
Calculation:
  • deductible_applied = deductible_remaining
  • remaining_allowed = allowed_amount − deductible_remaining
  • reimbursement = remaining_allowed × insurer_share_percent

Rule 4 — Post-Deductible

Condition: claim_status = approved
AND deductible_remaining = 0
Calculation: reimbursement = allowed_amount × insurer_share_percent

Rule 5 — Client Responsibility

Calculation: client_responsibility = provider_fee − reimbursement

Allowed Amount Gap

Definition: allowed_gap = provider_fee − allowed_amount Rule: allowed_gap is generally the client’s responsibility in out-of-network billing.

Claim Outcome Classification

Outcome: Reimbursed

Condition: reimbursement > 0

Outcome: Applied to Deductible

Condition: reimbursement = 0
AND deductible_applied > 0

Outcome: Denied

Condition: claim_status = denied

Critical Clarifications

Rule: An approved claim may result in reimbursement = 0 when deductible_remaining > 0.

Estimate vs Final Outcome

Rule: All estimates are based on input values available at the time of calculation. Final outcomes may differ due to changes in:
  • allowed_amount
  • deductible_remaining
  • claim_status

Allowed Amount Source of Truth ### Definition

  • The allowed amount is the maximum amount recognized by the insurer for a given service.

Source and Timing

  • Before claim submission:
  • Allowed amount is estimated by Thrizer.
  • After claim approval (adjudication):
  • Allowed amount is determined by the insurer based on the processed claim.

System Behavior

  • Thrizer uses estimated allowed amounts to:
  • calculate expected reimbursement
  • power Thrizer Pay pricing and client responsibility estimates
  • After a claim is approved (adjudicated):
  • Thrizer updates its internal understanding of the allowed amount using the insurer’s response

Estimate Accuracy Guidance

  • Allowed amount estimates are based on historical patterns and available benefit data.
  • These estimates are not guaranteed.
Observed behavior:
  • A majority of actual allowed amounts fall within a narrow range of the initial estimate.
  • However, variance may occur based on:
    • provider
    • location
    • service type
    • insurer-specific adjudication rules
Constraint:
  • Do not represent allowed amount estimates as exact predictions.
  • Do not guarantee any specific variance range.
  • Final allowed amount is always determined by the insurer after claim adjudication.

Stability

  • Allowed amounts are generally stable after the first approved (adjudicated) claim for a given context
  • However, insurers may change allowed amounts, which are determined externally

Constraint

  • Thrizer does not control the final allowed amount
  • Final allowed amount is always determined by the insurer

Non-Deterministic Factors (External)

The following are determined by the insurer and are not defined in this file:
  • allowed_amount determination
  • claim approval or denial
  • deductible tracking across claims
  • reimbursement timing
These must be treated as external inputs.

Reimbursement Variance Responsibility

Definition

  • Reimbursement variance is the difference between:
    • estimated reimbursement (pre-approval)
    • actual reimbursement (post-apporoval)

Responsibility

  • The client is fully responsible for all reimbursement variance
  • This includes:
    • lower-than-expected reimbursement
    • higher-than-expected reimbursement

System Behavior

  • Estimates are provided for guidance only and are not guaranteed
  • The system does not:
    • retroactively adjust clinician payment based on actual reimbursement
    • shift financial responsibility to the clinician

Clinician Protection

  • Clinicians are not impacted by differences between estimated and actual reimbursement
  • Clinician earnings are not adjusted based on insurer approval (adjudication) outcomes

Constraint

  • Final reimbursement is determined by the insurer
  • All financial variance resulting from insurer behavior is borne by the client