We are no longer in a situation where we send insurance payments, and they pay. You’ve produced the dentistry; why haven’t you been paid?
Dental insurance companies are short-handed, like dental offices, and they’re coming up with multiple reasons why they cannot pay a claim or pay it promptly. We must rethink how we bill and follow up on outstanding dental claims. It’s not only insurance payments that are important; it’s over the counter too. What is collected at the time of service? You should consider Revenue Cycle Management as necessary as your recall system and keep the schedule as the goal. You can never be too good when getting paid, keeping up with A/R, and outstanding claims!
Today’s environment is no longer planning for the claims to be paid within 29 days or less. You will want to follow up on claims 7-10 days old. This might seem excessive, but it will avoid delays when calling at 30 and 60 days, putting payment out 30 to 60 days more. I’m sure you’ve all experienced at some point calling an insurance company and having them tell you they need XYZ, but you’ve submitted it and have confirmation. Or you call, and they tell you they have all the information and will send it to be processed, which turns into a 90-120 days outstanding claim, and we all know an outstanding claim equates to money. Delayed insurance payments are the devil to your accounts receivable.
What can you do to ensure your cash flow remains on track and minimize outstanding insurance payments?
Here are some recommendations:
- Verify the patient’s dental insurance before starting any dental work
- Enter correct coverage tables in the computer
- Collect estimated co-pay at the time of service
- Submit claims promptly
- Follow up on outstanding claims
- Implement new coding changes and stay current on changes in the CDT codes
The health of your dental practice coincides with your revenue cycle management. If you need to make changes to grasp the profitability of your practice, now is an excellent time to implement a firm process.
Follow a system that is easy to reteach and easy to cover on vacations and medical leaves, and more than anything gives you control of how, where, and when your company’s money comes in! Click on the link below.
