What is meant by the term "next responsible party" (NRP)?

The term "next responsible party" (NRP) refers to the individual or entity that is responsible for any outstanding balances after insurance payments have been applied. This typically means that if a patient has additional financial responsibility after their insurance has processed a claim, the NRP is the person or entity legally obligated to pay that amount.

In medical billing, identifying the NRP is crucial for ensuring that the appropriate party is billed for any remaining costs associated with the patient’s care. This can include co-pays, deductibles, or services not covered by insurance. In the context of billing practices, accurately determining the NRP helps streamline collections and ensures that the practice can recover the amounts due effectively.