Collecting from patients is one of the more challenging tasks of practice management. For the financial sustainability of your practice, you must make a concerted effort to collect co-payments, coinsurance, deductibles, and amounts for services not covered by insurance. You will receive more patient collections if you try and collect at the time of service only.
A recent study report from Medical Economics indicates that collection rates for insured patients can be as low as 50 to 70 percent after the patient walks out the door. The rate continues to decline as time passes and before an account is turned over to a collection agency.
The most interesting finding of that report is, more than 50 percent of patients are willing to pay $200 to $500 or more by credit or debit card at the time of a physician visit. With these encouraging stats, you should focus on maximizing patient collections by collecting more at the time of service only. Some of the strategies to maximize patient collection at the time of service are as follows:
Strategies to Maximize Patient Collection
Collection of Co-Payments
The co-payment for an office visit is usually easy to determine. It’s either printed on the patient’s insurance card or available when your staff verifies the patient’s insurance. As most patients know it is due at the time of service, you just need to make little effort to collect co-payments from every patient. Even though co-pays are of a small dollar amount, 100 percent collection will result in a substantial amount.
Collection of Deductibles
Deductibles and coinsurance can be more difficult to estimate, particularly if a range of services are provided. Some of the services, like some preventive services, might not be subject to coinsurance or even deductibles. Other services could be subject to confusing reimbursement rules like those for multiple procedures. Some services might not even be covered.
Regardless, it is usually better to make the best estimate you can and attempt to collect that amount at the time of service. If you start documenting insurance coverage reports, you can provide accurate estimates about procedure codes and applicable coinsurance or deductibles.
Offer Payment Plans
Payment plans and options are an effective way of getting patients to pay. You should come up with a financial policy that sets dollar thresholds and time frames. You need to send your statements digitally. These statements must have a link to pay the outstanding amount. Having a digital means of paying also increases the likelihood of patients making some payments rather than none.
Being able to offer digital or mobile payment options is a great place to ensure the bill is paid. You might even look at the relationship you have with the patient, if this has been your patient for 10 or 15 years, and he’s never had a financial collection, there should be some sort of consideration for their history.
Eligibility and Benefits Verification
Eligibility and benefits verification is one simplest things that will ensure maximum patient collection at the time of service. Always ensure that you will collect all essential patient and insurance information required for benefits verification. Have a copy of the insurance card (secondary payer if available) front and back, and identification card. And using patient and insurance information conduct eligibility and benefits verification for every visit.
This verification should be done at least a couple of days prior visit. The benefits report will tell you the co-payment, co-insurance, and deductible amounts. It will also tell if the patient’s insurance is covering planned services or not. Your front desk staff equipped with benefits reports will be in a better position to answer any patient questions and will collect maximum patient responsibility.
Eligibility and benefits verification is really crucial step in collecting patient payments. You will need well-trained staff to conduct eligibility and benefits verification for every patient visit. If you don’t have skilled manpower to conduct eligibility and benefits verification, we can assist you.
Medical Billers and Coders (MBC) is a leading medical billing company providing complete revenue cycle solutions. We can share benefits reports a few days prior to the patient visit. With benefits reports, you can communicate with patients regarding any patient responsibility whether it’s co-payment, co-insurance, or unpaid deductibles.
So, they will be well prepared at the time of the visit to pay their responsibility. To know more about our overall billing and coding services, contact us at info@medicalbillersandcoders.com/ 888-357-3226
FAQs
1. Why is collecting patient payments at the time of service important?
Collecting payments at the time of service increases the likelihood of payment and ensures better financial sustainability for your practice.
2. How can I collect co-payments effectively from patients?
Co-payments can be easily collected by verifying the amount through the patient’s insurance card or insurance verification and requesting payment when the patient arrives.
3. What are some strategies for collecting deductibles and coinsurance?
Estimate deductibles and coinsurance as accurately as possible and attempt to collect the amount at the time of service, providing patients with an informed estimate.
4. How can payment plans help maximize collections?
Offering payment plans with clear financial policies and digital/mobile payment options increases the chances of patients making timely payments.
5. What role does eligibility and benefits verification play in patient collections?
Verifying insurance benefits before the visit ensures accurate information on co-pays, coinsurance, and deductibles, helping staff collect the correct patient responsibility at the time of service.
