What is the maximum age (in weeks) for a discrepancy to be eligible for an Automated Deduction (AAD)?

• A. 12 weeks
• B. 6 weeks
• C. 8 weeks
• D. 16 weeks

Answer: (A)

Automated Deduction is used to automatically resolve small discrepancies, but only within a limited time frame. In ARC, the age of a discrepancy is tracked in weeks from when it first appears in the settlement process to the point of processing the deduction. If the discrepancy is 12 weeks old or younger, it can be automatically deducted. If it’s older than 12 weeks, it’s no longer eligible for AAD and must be handled manually with any required documentation. That makes 12 weeks the maximum age for eligibility. The other options fall outside this cutoff: shorter windows are still valid but not the maximum, and a longer window would exceed the policy.