prorating


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prorating (prōrā´ting),

n a clause in a contract with participating dental professionals wherein they agree to accept a percentage reduction in their billings to offset the amount by which the total cost of services provided exceeds the total premium received. Prorating is a method of spreading a “loss” equitably among participating dental professionals.
References in periodicals archive ?
The insignificant coefficient of the prorating liability dummy variable suggests that there may be no significant difference between prorating liability and last employer liability in their effects on occupational disease incidence.
To compensate employees suffering an occupational disease that may involve many parties and a manifestation lag, workers' compensation systems use two employer liability rules: prorating liability among responsible employers and last employer liability.
This may be due to practical difficulties in prorating liability due to transaction costs.