Electronic Medical Billing
What is Electronic Medical Billing and how
does it work? Billing your medical insurance claims electronically means
that you are actually creating a data file of all of your insurance claims
and sending it electronically to the insurance company either via
telephone line, internet, or some other form of communication.
major advantage of billing electronically is that the insurance companies
save money because electronic claims are less costly to process over paper
claims so they process them quicker thereby paying you faster.
In order to send
your claims electronically, you will need to be connected to a
clearinghouse, or you will need special software that allows you to act as
your own clearing house. Here is more
information on the differences.
The purpose of a clearinghouse is to take the
electronic file that you created and edit it for errors, sort it out and
forward the claims to the correct insurance company.
clearinghouses charge you a per claim fee anywhere from $.25 to $.50. Some
will charge a monthly fee. Some will charge an initial set up
fee. Clearinghouses vary greatly and you need to research them
thoroughly before picking one. The software that allows
you to act as your own clearinghouse is usually quite costly, sometimes
costing close to the same as your billing software. But if you are billing
for multiple doctors (such as a billing service would) or you have a very
large practice, this may actually be more cost effective.
Keep in mind that this
method requires a little more behind the scenes work on your end.
You will need a reliable person who is knowledgeable about computers to
keep up with this type of system.
Whichever way you choose,
it is important to have a good reliable method for electronic medical
billing. Some insurance companies have already mandated it, and many more
are headed that direction.
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