Health and wellness professionals are known for their passion for making a significant impact on their clients' well-being. However, passion alone won't pay the bills. To ensure your business thrives, you need fair compensation for your expertise and services. For many practitioners, this involves dealing with medical insurance billing.
Insurance billing, when done accurately, can ensure swift payment. However, the complexity of the process means there's much that can go wrong. This article discusses the five most common problems wellness professionals encounter when dealing with insurance billing, along with advice on preventing them in your business.
Though there's limited data on the frequency of claim denials in insurance billing, one report suggests insurers deny between 10% and 20% of claims. Regardless of the true number, denied claims represent a drain on your business – both in terms of cash flow and the administrative load associated with following up.
Amy Plano (aka The Reimbursement Dietitian) teaches dietitians how to use health insurance as a profit tool in their practices – in addition to running her own highly successful nutrition private practice. “There are so many reasons for insurance denials,” says Amy. “However, the majority of these mistakes are user errors. This is usually due to provider knowledge gaps.”
For example, if a primary care physician (PCP) diagnoses a patient with a medical condition that requires nutritional counseling, the PCP can make a referral and include the correct ICD 10 codes (International Classification of Diseases) on insurance billing forms.
According to Amy Plano, these types of errors often occur when a practitioner delivers counseling by telehealth. They then use an incorrect code to represent telehealth on the insurance claim. Or, a practitioner assumes they are billing under the preventive side of a patient’s insurance policy. That will make the ICD 10 codes they enter on a claim inconsistent with the service provided.
“Each insurance company classifies preventative MNT (Medical Nutritional Therapy) services differently,” according to Amy. “This information is available on insurance companies' websites under preventative services. Providers are required to know how to bill for these services.”
In a dietitian’s practice, Amy says this can happen if a practitioner doesn’t properly verify the MNT benefits beforehand. If the patient doesn’t have coverage on their plan for the conditions the provider billed for, it will be denied.
Handy tools to help with code look-up:
Credentialing is the process of proving your qualifications and professional background to an insurance company. It’s the first step in how to become an in-network provider. Credentialing ensures providers in the system meet an insurer’s standards for delivering services.
Contracting comes after successful credentialing. It involves negotiating and signing a legal agreement with an insurance company. This agreement outlines the terms and conditions of services, agreed-upon reimbursement rates, and more. Once the contracting goes through you can begin submitting for services provided.
Common issues with credentialing and contracting:
If you neglect to re-credential on time your claims will get denied. The resulting gap in coverage means patients pay out of pocket or you create a Superbill so they can file for direct reimbursement. Both can negatively impact the client experience you’ve worked so hard to cultivate.
Credentialing with a larger network of payers might sound like a great way to grow your practice, but getting credentialed with all of them is even more time-consuming. A smaller subset of plans or insurers may work well with the services you provide. Talk to your colleagues about the insurance market in your area or ask clients directly about their insurance providers to look for overlap.
Performing a verification of benefits before you provide services ensures you will receive payment from a client's insurance. Checking ahead helps you understand things like coverage limitations, deductible realities, referral requirements, and copayment or coinsurance rules.
Failing to verify benefits can cause:
You need the right codes to get paid quickly and correctly, but those codes always seem to change. Staying up to date on the most recent changes can be challenging.
How to keep up with code and regulation changes:
Beyond the usual culprits of inaccurate documentation, coding errors, and credentialing and contracting delays, insurance companies frequently have backlogs that can slow reimbursement.
Delayed payments can greatly impact the financial health of your business. So, let’s explore some solutions for avoiding this common pitfall.
Note, all states (except South Carolina) have rules requiring insurers to pay or deny claims within a certain time frame, known as “prompt pay” laws. These laws apply to “clean claims” which means claims with no errors. You can navigate your way to filing a complaint on the NAIC website by selecting your state from the drop-down on the home page.
The administrative burden associated with how to start billing insurance companies can loom large for practitioners. It’s expensive, too. According to the Center for American Progress, U.S. payers and providers spend about $496 billion a year on billing and insurance-related (BIR) costs.
You can keep your costs (and headaches) down by following the tips in this article for avoiding common insurance billing pitfalls. Practice Better also has an insurance integration built-in to help with streamlining your insurance billing success. Not a customer yet? Claim your free trial.
Practice Better is the complete practice management platform for health and wellness professionals. Streamline your practice and begin your free trial today.
Health and wellness professionals are known for their passion for making a significant impact on their clients' well-being. However, passion alone won't pay the bills. To ensure your business thrives, you need fair compensation for your expertise and services. For many practitioners, this involves dealing with medical insurance billing.
Insurance billing, when done accurately, can ensure swift payment. However, the complexity of the process means there's much that can go wrong. This article discusses the five most common problems wellness professionals encounter when dealing with insurance billing, along with advice on preventing them in your business.
Though there's limited data on the frequency of claim denials in insurance billing, one report suggests insurers deny between 10% and 20% of claims. Regardless of the true number, denied claims represent a drain on your business – both in terms of cash flow and the administrative load associated with following up.
Amy Plano (aka The Reimbursement Dietitian) teaches dietitians how to use health insurance as a profit tool in their practices – in addition to running her own highly successful nutrition private practice. “There are so many reasons for insurance denials,” says Amy. “However, the majority of these mistakes are user errors. This is usually due to provider knowledge gaps.”
For example, if a primary care physician (PCP) diagnoses a patient with a medical condition that requires nutritional counseling, the PCP can make a referral and include the correct ICD 10 codes (International Classification of Diseases) on insurance billing forms.
According to Amy Plano, these types of errors often occur when a practitioner delivers counseling by telehealth. They then use an incorrect code to represent telehealth on the insurance claim. Or, a practitioner assumes they are billing under the preventive side of a patient’s insurance policy. That will make the ICD 10 codes they enter on a claim inconsistent with the service provided.
“Each insurance company classifies preventative MNT (Medical Nutritional Therapy) services differently,” according to Amy. “This information is available on insurance companies' websites under preventative services. Providers are required to know how to bill for these services.”
In a dietitian’s practice, Amy says this can happen if a practitioner doesn’t properly verify the MNT benefits beforehand. If the patient doesn’t have coverage on their plan for the conditions the provider billed for, it will be denied.
Handy tools to help with code look-up:
Credentialing is the process of proving your qualifications and professional background to an insurance company. It’s the first step in how to become an in-network provider. Credentialing ensures providers in the system meet an insurer’s standards for delivering services.
Contracting comes after successful credentialing. It involves negotiating and signing a legal agreement with an insurance company. This agreement outlines the terms and conditions of services, agreed-upon reimbursement rates, and more. Once the contracting goes through you can begin submitting for services provided.
Common issues with credentialing and contracting:
If you neglect to re-credential on time your claims will get denied. The resulting gap in coverage means patients pay out of pocket or you create a Superbill so they can file for direct reimbursement. Both can negatively impact the client experience you’ve worked so hard to cultivate.
Credentialing with a larger network of payers might sound like a great way to grow your practice, but getting credentialed with all of them is even more time-consuming. A smaller subset of plans or insurers may work well with the services you provide. Talk to your colleagues about the insurance market in your area or ask clients directly about their insurance providers to look for overlap.
Performing a verification of benefits before you provide services ensures you will receive payment from a client's insurance. Checking ahead helps you understand things like coverage limitations, deductible realities, referral requirements, and copayment or coinsurance rules.
Failing to verify benefits can cause:
You need the right codes to get paid quickly and correctly, but those codes always seem to change. Staying up to date on the most recent changes can be challenging.
How to keep up with code and regulation changes:
Beyond the usual culprits of inaccurate documentation, coding errors, and credentialing and contracting delays, insurance companies frequently have backlogs that can slow reimbursement.
Delayed payments can greatly impact the financial health of your business. So, let’s explore some solutions for avoiding this common pitfall.
Note, all states (except South Carolina) have rules requiring insurers to pay or deny claims within a certain time frame, known as “prompt pay” laws. These laws apply to “clean claims” which means claims with no errors. You can navigate your way to filing a complaint on the NAIC website by selecting your state from the drop-down on the home page.
The administrative burden associated with how to start billing insurance companies can loom large for practitioners. It’s expensive, too. According to the Center for American Progress, U.S. payers and providers spend about $496 billion a year on billing and insurance-related (BIR) costs.
You can keep your costs (and headaches) down by following the tips in this article for avoiding common insurance billing pitfalls. Practice Better also has an insurance integration built-in to help with streamlining your insurance billing success. Not a customer yet? Claim your free trial.
Practice Better is the complete practice management platform for health and wellness professionals. Streamline your practice and begin your free trial today.
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