The odds of a denied medical claim or reduced payments have increased substantially as insurance companies have tightened the eligibility requirements. The procedure for claims filing has also become complicated. With new codes being introduced every day, it has become important to ensure error-free claims for getting timely payments.
Claims denials disrupt the cash flow for medical practices. However, timely appeals can help practices receive payments for these denied claims. Mentioned below are some of the reasons due to which medical claims are denied by insurance companies:
- Insufficient information with the insurer for processing the claim
- Application of wrong codes for the rendered services
- Non coverage of service under the insurance plan
Importance of Timely Appeals
The procedure of appealing a denied claim differs from one insurance company to another. Therefore, it is important for physicians to be aware of the time limit and levels of appeal for each health plan. Only when the appeals are filed within the specified timeframe physicians can get paid for the denied claims.
Some claims are easier to resolve whereas others are more complicated. For instance, health coverage problems such as mentioning of a wrong code on the claims form can be resolved with a simple phone call but other complex issues require an appeal. It is important to evaluate the denied claim before deciding to spend time and money on filing an appeal. Since this is a time-consuming process, physicians need to follow the specified deadlines.
Mastering the Process of Claims Appeals
Practices need to figure out the reason behind coverage denials and also find out the procedure for filing appeals with the insurer. The AMA has introduced various resources to make the process of appeals and claim audits simple for the physicians.
Administrative denials are easier to handle but clinical denials require a lot of paperwork. It needs to be completed in a certain timeline before an appeal is submitted. It is important to ensure that the service the practice will be appealing for is included in the health plan contract of the patient. Documentation and coding should also be reviewed before an appeal letter is submitted. It helps to be prepared with sources to support the treatment plan, if the need arises.
Maximize Revenue with Outsourcing
Appealing denied claims and collecting payments for the rendered services is vital for maximizing a practice’s revenue. But due to stringent healthcare reforms, the doctors are left with less or no time at all to pursue appeals, especially the complicated denials that require extensive staff training on coding issues.
To sail through such reimbursement challenges, many practices have started outsourcing their RCM needs to billing companies like MedicalBillersandCoders.com. Billing partners like MBC help physicians maximize revenue by addressing claims issues, rejection of reimbursements, saving on infrastructural and cost to company for administrative employees and billing staff. They are a trusted consortium of billers and coders who are well-trained in filing timely, error-free claims and appealing denied claims for practices. MBC is a known name in US for 15 years, with their services spread over 40 medical specialties. Meet your coding and administrative challenges and safeguard your financial health of medical practice.