Obligated to Accept Field (OTAF)

This is the amount the provider agreed to accept from the primary payer when the amount is less than the charges but higher than the payment amount; then a Medicare secondary payment is due to the provider.

There is not a specific column or area on an Explanation of Benefit (EOB) that indicates the OTAF amount. However, this amount is determined by other information that is listed on the EOB, such as:

  • discount,
  • provider write-off,
  • withholding,
  • risk amount,
  • service benefit credit,
  • contractual adjustment,
  • provider agreement,
  • negotiated savings, or
  • an amount that the beneficiary is not liable for.

If the beneficiary is not responsible for any of these amounts, then the OTAF amount would be the same as the amount the primary insurance allowed (SA). Using an OTAF amount will indicate that there is a discount that the beneficiary was not responsible for. This may have to be manually calculated, by taking the billed amount minus the discounts/adjustments to calculate the OTAF. Further information can be found on the MSP Payment Calculation Examples page.

 

Last Updated Fri, 09 Sep 2022 17:50:29 +0000