As for the rest of the time--when I'm watching ballroom-dancing competitions and searching for batteries for my Bop It and extracting all the sopapilla pieces from a gallon of limited edition cinnamon ice cream with the precision of a brain surgeon--there's no real excuse.
Definition of ALLOWANCE: A deduction, an average payment, a portion assigned or allowed: the act of allowing. The Law Dictionary Featuring Black's Law Dictionary Free Online Legal Dictionary 2nd Ed. Navigation
Best Answer: Contractual allowance is the agreed amount in which the insurance company will pay as opposed to what the facility/doctor will charge. Also, say a hospital charges $50 for something, the insurance contracted allowable would be, say, $40, so the contractual adjustment would be $10, essentially the hospital would be writing off the $10.