World Library  
Flag as Inappropriate
Email this Article


Article Id: WHEBN0003237859
Reproduction Date:

Title: Reimbursement  
Author: World Heritage Encyclopedia
Language: English
Subject: Credit card, Out-of-pocket expenses, International Statistical Classification of Diseases and Related Health Problems, EUCOPE, Divorce insurance
Collection: Commerce
Publisher: World Heritage Encyclopedia


Reimbursement is an act of compensating someone for an expense.[1] Often, a person is reimbursed for out-of-pocket expenses when the person incurs those expenses through employment or in an account of carrying out the duties for another party or member.

Common examples are firms compensating individuals who buy supplies for their companies, or firms compensating employees on field or out-of-town assignments who pay for their stay and transportation.

Reimbursement can be of many types like day care, mobile expense, transport, medical expense, study expenditure.

Medical device manufacturers provide their customers (hospitals, physicians e.g.) with sufficient information, how to reimburse the therapies. For example see the German Medtronic Reimbursement homepage[2]

Use as Cost Reduction Measure

Organizations can reduce their costs by instating reimbursement processes which deter reimbursement seekers. If a reimbursement process is made to be slow, cumbersome, or inconvenient to the seeker, then the probability that a seeker will not successfully obtain the funds increases and, in aggregate, results in fewer paid reimbursement claims.

Elements of cost-reducing reimbursement process:

  • Insistence on submission of printed reimbursement forms (instead of email or online forms)
  • Forms are lengthy and require detailed explanations
  • Process requires dropping-off of paper forms at specific locations in person
  • Stringent rejection of forms when there are errors, even if minor or inconsequential
  • Requiring original receipts to be attached with form (instead of copies)
  • Issuing paper checks (instead of cash or direct deposit)
  • Requiring checks to be picked up at specific locations
  • Form drop-off and check-pick up locations are distant and have narrow and inconvenient operating hours

These elements are used by many organizations, including: non-profits,[3] governments,[4] universities,[5] and insurance companies.[6]

Because these elements may consume significant amount of time, the seekers can insist that they be compensated for the time spent on the reimbursement process.


  1. ^ "Reimburse, definition". Merriam-Webster. 
  2. ^
  3. ^
  4. ^;jsessionid=4FABB33B25CCC3CE3D77AFF716812A90.eleven?mediaId=66573
  5. ^
  6. ^

This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.

Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.