Optimizing Health Insurance Billing Process: Compete Guide
The insurance billing process is paramount as healthcare continues to evolve and become even more intricate for the sustainability of the financial status of a firm and overall efficiency.
Several increased regulations and insurance policies now require healthcare practitioners to tackle a number of billing codes, claim submissions, and reimbursement systems.
An essential reference work that clearly explains the billing function and recommendations for optimizing billing operations and enhancing revenue cycles. With this blog, you will understand health insurance billing and how to increase your practice’s collections regardless of your experience level.
Health Insurance Billing Basics Explained
The health insurance billing process is an integral part of the healthcare system. It plays a vital role in ensuring that the patient receives quality care while the healthcare provider gets payments timely for the services they provide. But what exactly does the health billing process entail?
Health insurance billing refers to the systemic process of submitting claims to insurance companies and following up on them. This ensures timely reimbursement for the services rendered to patients. It involves translating medical diagnosis, treatment, and procedures into alphanumeric standard codes. Such as CPT (Current Procedural Terminology) codes and ICD (International Classification of Diseases) codes which are used to describe and classify healthcare services.
Healthcare providers which include physicians, hospitals, and clinics, submit claims to the insurance companies on behalf of their patients. These claims will review by the insurance service provider and then processed. After the claim get approves, health insurance companies issue payment to the healthcare provider or the third-party billing company. However, in case a claim is denied, the provider or billing expert needs to identify errors in the billing process and rectify them before submitting the claim again.
The process of health insurance billing involves a lot of paperwork. Furthermore, various regulations make it a complex process that requires specialized expertise.
Overall, healthcare insurance billing plays a crucial role in ensuring that healthcare providers are compensated accurately for the services they deliver. Thus, enabling them to continue providing quality care to patients along with maintaining the financial stability of their practice. Read more
Key Steps/Components for a Successful Medical Billing Process
The health insurance billing process may seem like an overly complicated process that is too hard to grasp. So here is a simplified version, explaining the billing process by breaking it down into 8 basic steps that are essential for insurance billing:
Patient Registration in Medical Insurance Billing
Patient registration is the initial step in the medical insurance billing process. This process will initiate when the patient contacts the healthcare practice to schedule an appointment.
For new patients, demographic details, including their name, date of birth, contact number, the reason for visit, and insurance details keep the record. Details related to insurance include the name of the insurance provider, type of insurance policy, and patient’s policy number.
Healthcare practices or third-party billing companies then make a dedicated file for this patient. However, if the patient is a regular visitor of the practice, then this step will not be repeated with each appointment.
Establishing Patient Financial Responsibility
Each insurance company has its own set of regulations for insurance coverage and reimbursement following medical claim processing. It is necessary to confirm or establish financial liability for the patient to ensure the service is covered under the insurance policy.
The process enables the patient to have an understanding of what services are managed by their insurance company and what expenses they are responsible for after the insurance portion is applied. By knowing this information, patients can make informed decisions about whether to utilize the service or not.
Overview of Patient Check-in and Check-out
Patient check-in and check-out procedures are relatively uncomplicated and can be handle effectively. Upon arriving at a healthcare facility, patients are typically requires to fill out necessary forms pertaining to their purpose of visit. New patients have to fill out some additional forms.
During the check-out process, the medical biller or coder carefully extracts all the relevant information from the documents. It includes the medical history and treatment provided. It is then translated into accurate medical codes thus creating a document that is referred to as ‘superbill’. The superbill serves as essential information for generating claims. Once complete, the superbill is transferred typically through a software program to medical billers.
Monitoring Compliance
In the healthcare insurance billing process, compliance with the Office of the Inspector General (OIG) and the Health Insurance Portability and Accountability Act (HIPAA) is strictly adhered to. After inputting necessary information into the software, the biller performs additional checks.
This is to ensure compliance standards are met. Moreover, this meticulous review ensures that the insurance billing process is accurately and appropriately crafted following all relevant guidelines and regulations.
Preparing and Transferring Claims
In accordance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA), claims and transactions in healthcare insurance billing are transferred electronically for efficient processing. Manual claims are still acceptable, however, they are prone to errors. Moreover, they have low levels of efficiency which takes longer to get reimbursement.
Healthcare practices often seek help from third-party medical billing service providers to streamline health insurance billing. These service providers help with accurate claim submission. It thus reduces the workload and ensures efficient handling of the billing cycle.
Payer Adjudication Overview
Payer adjudication is an integral step in the billing process. In this process, the healthcare payer, that is the insurance company, evaluates claims, codes, compliance, and charges to determine whether to accept them. The evaluation follows predefined guidelines. For healthcare facilities to receive reimbursements, they must submit clean claims to insurance service providers.
Coding errors, often made by billers and coders are the most common reason for claim denials. This is due to frequent changes in regulations by CMS, affecting healthcare practices and insurance service providers. Moreover, insurance payers often have policies that the patients and healthcare providers have to adhere to.
Generating Invoices and Statement of Services
Once the claim gets approved, the biller, or third-party company, receives a report detailing the services that have been paid by the insurance company. The biller then communicates to the patient about the payment that were due upon by the insurance service provider.
If there is any remaining amount then it is paid by the patient. This process involves creating invoices and statements that clearly outline. The services provided, the payments made by the insurance service provider, and the patient’s financial responsibility.
Patient Bill Assignment and Revenue Collection
The final step in the process of insurance billing involves the collection of payments for services provided by patients. Medical billers are responsible for sending bills to patients and monitoring outstanding payments if any.
In settings where payments are delayed or not made, billers are given the task to follow up and remind patients through various channels. This includes emails, text messages, and phone calls. The billers play a crucial role in ensuring timely bill payments.
Additionally, healthcare providers can seek assistance from professional billing agencies to help streamline the collection of payments from patients. These agencies specialize in managing payment collections and can provide support to healthcare providers in the revenue collection process.
How to Improve Medical Billing Workflow
Improve medical billing workflow in a way that tries to raise the impact of existing processes to new levels. Begin by ensuring that billing is performed through a sound software that has an EHR interface with AI system to eliminate data entry mistakes.
A critical approach is conducting staff training on billing practices and coding to help them get acquainted with the current payer’s requirements. Outlining the important procedures regarding the submission and the follow-up of the claims and appeals to reduce the issue of denial and rejection. Schedule normal checkups with the singularity of discovering workflow lags.
Through the employment of these measures, healthcare providers will be in a position to increase the billing speed, and hence, increase the cash flow, and get an overall improvement on the managerial aspect of revenues.
15 Best Medical Billing Tips To Improve Practice Revenue
- Avoid claim rejections by using accurate and current billing codes. Stay current with coding standards by reviewing coding techniques.
- Using a robust claims management system to track and manage claims efficiently reduces the risk of lost or delayed payments.
- Before providing services, verify patient insurance coverage and eligibility to avoid billing difficulties and bill the correct payer.
- Determine the causes of claim denials and adopt preventative measures. This could include billing procedure revisions or staff training.
- Integrate Electronic Health Records (EHR) with billing procedures to simplify data entry, eliminate errors, and increase claim accuracy.
- Inform patients of their financial obligations and seek consents before providing services.
- Review payer contracts often to ensure they are current and advantageous. Review these agreements periodically to find and negotiate better terms.
- Regularly check AR reports for delinquent accounts and follow up. Reduce AR days and boost cash flow.
- Your billing staff needs continual training on code revisions, payer regulations, and medical billing best practices.
- Follow up on unpaid or partially paid claims to ensure quick reimbursements.
- Utilize analytics to spot patterns, measure performance indicators, and make informed decisions to optimize billing and revenue management.
- If it improves efficiency, accuracy, and revenue collection, outsource billing to a medical billing company.
- To avoid penalties and legal difficulties that could reduce revenue, stay current on healthcare and billing rules.
- Analyze and simplify your billing procedures to cut administrative costs, errors, and inefficiency.
- Provide different payment alternatives and discuss patient payment plans to boost collections and eliminate bad debt.
Outsource Your Health Insurance Billing Process to HMS Medical Billing Company
Healthcare professionals can discover health insurance billing is complicated and time-consuming. Billing might drain internal resources and reduce productivity due to precise coding and changing insurance rules. Outsourcing health insurance billing to HMS Medical Billing can improve revenue cycle management and operations.
Here’s how HMS Medical Billing can make a difference:
- Expertise in Medical Billing and Coding
- Improved Claim Accuracy and Reduced Denials
- Enhanced Focus on Patient Care
- Streamlined Revenue Cycle Management
- Compliance and Risk Management
- Cost-Effective Solutions
From accuracy and efficiency to compliance and cost savings, outsourcing your health insurance billing to HMS Medical Billing Company has several benefits. By working with HMS, you can simplify billing, eliminate administrative tasks, and focus on patient care. Our experienced billing services can revolutionize your practice’s revenue cycle management. Contact us today.
FAQ's
Common denial codes include:
CO-4: The procedure code is inconsistent with the modifier used.
CO-45: Charges exceed your allowable amount.
PR-1: Deductible applied.
PR-2: Coinsurance applied.
PR-3: Copayment applied.
An EOB summarizes the specifics of your medical bill claim. It typically includes:
Patient and Provider Information: At least the following should be filled; Patient Identification, Healthcare Provider Identification.
Claim Details: How and when the service was provided, procedures done, and how much they billed.
Payment Information: Charge, revenue code, paid by insurance, and liability to patient.
A PCP is responsible for coordinating care, providing referrals to specialists, and ensuring that treatments are medically necessary. They also complete and sign the required documentation for insurance claims and authorizations.
DME refers to medical equipment prescribed for long-term use, such as wheelchairs or oxygen tanks. In medical billing, DME claims must include detailed documentation and specific codes to ensure proper reimbursement from insurance companies.
COB determines the order in which multiple insurance plans pay for a claim. The primary insurer pays first, covering costs up to their limits, and the secondary insurer may cover remaining costs. This process ensures that the total reimbursement does not exceed the actual expenses
Payment posting in health insurance billing involves recording and documenting payments received from insurance companies into billing software.
Claim is referred to as a clean claim when it is accurate and filled out, with all required information and supporting documentation provided. Clean claims have a higher chance exception and process promptly by insurance companies.
The CPT code for diagnostic mammography when performed unilaterally is 77065. Whereas, when the mammography is performed bilaterally, the CPT code is 77066.
The CPT code for a flexible colonoscopy procedure with control of bleeding through any method is 45382. Whereas, the CPT codes for flexible colonoscopy for the removal of polyps, tumors, or other lesions by hot biopsy method and snare technique are 45384 and 45385 respectively.
The CPT code 322758 use to bill metabolic panel lab tests.
