Reading a claims payment extract before month-end
What claims finance should verify in a payment extract before signing off the insurance claims accounting close.
Payment extracts look tidy until you sort them by rejection reason. Before finance signs the claims payable reconciliation, ask three questions of the file your claims application produced.
First, are voided and reissued payments both present, or did the void disappear while the reissue posted twice? Second, do recovery offsets sit in the same extract or in a separate recovery file that nobody matched this month? Third, are foreign-currency claim payments converted at the rate finance expects, or at the rate the claims application stored on the day of authorisation?
In Johor Bahru engagements we often find the third issue on medical claims paid to overseas providers. The difference per file is small; across a quarter it bends the ledger. Keep a one-page checklist next to the extract and tick these points before the reconciliation pack goes upstairs.