How does the "allowed amount" differ from the billed charges in payer adjudication?

How does the "allowed amount" differ from the billed charges in payer adjudication?

• A. The allowed amount equals billed charges.
• B. The billed charges are the amount the payer will pay after adjustments.
• C. The allowed amount is the maximum payment the payer will consider, often based on the payer’s fee schedule or usual customary rates; billed charges are the amount charged by the provider.
• D. The billed charges are always lower than the allowed amount.

Answer: (C)