Why Collecting Insurance Information on the First Visit is Crucial for Your Business
As a business owner, there are several things you need to prioritize to ensure that your venture thrives. One of the most crucial aspects of running a business is collecting insurance information from your clients on their first visit. However, some business owners neglect this step, which can be detrimental to their business.
In this article, we’ll delve into the reasons why collecting insurance information on the first visit is crucial for your business and how it can help improve your operations.
What is Insurance Information?
Insurance information refers to the details of your client’s health insurance plan. These include the name of the insurance company, the policy number, deductibles, co-pays, and other pertinent information. This information helps you understand how much the insurance company will pay for the services you provide and how much the client will have to pay out of pocket.
Why is Collecting Insurance Information on the First Visit Important?
Collecting insurance information on the first visit is important for several reasons. Firstly, it helps you verify your client’s insurance coverage and benefits, including coverage limitations, prior authorizations, and exclusions. This information helps you avoid denied claims and enables you to provide your clients with accurate estimates and explanations of benefits.
Secondly, collecting insurance information on the first visit helps you establish a payment plan with your clients. You can provide them with an estimate of how much they will owe after insurance and how much they will have to pay out of pocket. This helps your clients plan financially and avoids unexpected bills.
Thirdly, collecting insurance information on the first visit helps you avoid billing errors. By verifying insurance coverage and benefits, you can accurately bill the insurance company and the client and avoid disputes or rejections.
Insights and Statistics
In a study published by the American Medical Association, it was found that 23.4% of insurance claims are denied due to eligibility issues. This means that failing to collect insurance information on the first visit can result in wasted time, effort, and money in billing and appeals.
Moreover, according to a survey conducted by the Medical Group Management Association, practices that collect insurance information on the first visit reduce patient collections by 68% and increase front-end collections by 90%. This translates into improved cash flow, reduced bad debt, and increased revenue.
Examples of Successful Implementation
Several businesses have successfully implemented the practice of collecting insurance information on the first visit. For instance, Rady Children’s Hospital in San Diego introduced a program that trains their front desk staff on how to collect insurance information on the first visit. As a result, they have reduced their patient collection days by 25% and improved their upfront collections by 50%.
Another example is ZocDoc, an online platform that enables patients to book appointments with healthcare providers. ZocDoc collects insurance information from patients when they book appointments, which enables providers to verify eligibility and coverage before consultations. This has helped reduce denied claims and billing errors while improving patient satisfaction and retention.
Conclusion
In conclusion, collecting insurance information on the first visit is crucial for your business. By doing so, you can verify insurance coverage and benefits, establish payment plans, avoid billing errors, reduce denied claims, improve cash flow, and increase revenue. Moreover, several successful businesses have implemented this practice with great results. Therefore, it’s important to implement this practice in your business to improve your operations and ensure sustained success.
