What is the difference between billed charges and allowed amounts?

What is the difference between billed charges and allowed amounts?

• A. Billed charges are the amounts the provider asks to be paid; allowed amounts are the payer’s final approved payment after adjustments.
• B. Billed charges are the payer’s approved payment; allowed amounts are what the provider bills.
• C. Billed charges are the same as allowed amounts after adjustments.
• D. Allowed amounts are the full charge before any payer contracting.

Answer: (A)