Insurance Eligibility Verification: The Key to a Healthy Revenue Cycle
When it comes to healthcare, it is essential for providers to verify insurance eligibility and benefits for their patients. This process can help ensure that their office visit is as stress-free as possible, while also providing the necessary information about coverage levels and potential out-of-pocket costs that may be incurred. Additionally, verifying a patient’s insurance eligibility and benefits helps to protect both the provider and the patient from unnecessary or unexpected expenses that could arise due to incorrect or inadequate information.
Verifying insurance eligibility and benefits provides peace of mind to both the doctor and patient alike. Knowing exactly what is covered in advance helps ensure that all parties are aware of their respective financial responsibilities before any treatment is performed. Without this step in place, patients could end up with surprise medical bills or additional costs associated with care that they were not expecting.
Additionally, verifying insurance eligibility and benefits helps providers protect themselves from potential issues down the road. Without taking the time to ensure that a patient’s coverage is valid and up-to-date, a provider could be held liable for any unpaid treatments due to lack of coverage or payment of services rendered.
How Verifying Insurance Eligibility and Benefits improves AR cycles?
By ensuring that patients have active insurance coverage and understanding their benefits, providers can streamline billing and payment processes, ultimately improving their accounts receivable (AR) cycles. Here are several ways in which verifying insurance eligibility and benefits can positively impact the AR cycles: reduced denials and rejections, accurate billing, timely payments, avoiding surprises and disputes, and streamlined followups.
How Verifying Insurance Eligibility and Benefits Increases Number of Clean Claims?
Verifying insurance eligibility and benefits contributes to submission of clean claims by ensuring accurate patient information, validating insurance coverage, understanding benefit coverage, identifying patient financial responsibility, and complying with insurance guidelines. By proactively verifying insurance information, providers can improve their claim submission accuracy and increase the number of clean claims, leading to faster reimbursement and a more efficient revenue cycle.
How Verifying Insurance Eligibility and Benefits Improves Cash Flow by Reductions in Write Off and Denials?
Verifying insurance eligibility can have a significant impact on improving cash flow by reducing write-offs and claim denials for healthcare providers. Here’s how this process helps in achieving that:
- Proactive Denial Prevention: By ensuring that patients have active coverage and understanding their benefits, providers can address any issues in advance, such as missing authorizations or uncovered services. This proactive approach minimizes the chances of denials, ultimately improving cash flow.
- Accurate Billing: Verifying insurance eligibilityensures that providers have accurate information on patient coverage, deductibles, co-pays, and any limitations or requirements. With this knowledge, providers can submit claims accurately and include all necessary documentation, reducing the likelihood of claim rejections and write-offs. Accurate billing increases the chances of timely reimbursement, improving cash flow.
- Timely Payments: Understanding insurance benefits helps providers estimate the patient’s financial responsibility upfront. By collecting payments at the time of service or promptly issuing accurate bills, providers can avoid delayed payments or non-payment by patients.
- Reduced Write-Offs: By only providing services that have a higher likelihood of reimbursement, providers can significantly decreases the chances of write-offs due to uncovered services or non-authorization.
- Streamlined Claims Process: Verifying insurance eligibility and benefits early in the revenue cycle management process allows providers to address any issues promptly. It reduces the need for time-consuming and costly rework, such as claim resubmissions or appeals.
We have explained the importance and benefits of verifying insurance eligibility and benefits in detail above. Now we’ll list all the important questions that should be asked to patients and insurance providers to ensure insurance eligibility and covered benefits.
Ask the Below Questions to the Patients
To ensure insurance eligibility and benefits, healthcare providers should ask patients the following questions:
- What is your insurance company’s name and policy number? Obviously!!
- Can you provide the group number associated with your insurance?
- Is your insurance coverage still active and valid?
- What type of insurance plan do you have (private, government-sponsored, employer-provided)?
- Are there any specific limitations or exclusions in your insurance coverage that we should be aware of?
- Do you have any co-pays or deductibles that you are responsible for?
- Are there any prior authorization requirements for the services or treatments you are seeking?
- Has there been any recent change in your insurance coverage or personal information?
- Can you provide the name and other details of the primary insured person (if different from the patient)?
These questions help providers verify the patient’s insurance eligibility, understand the benefits and coverage details, estimate the patient’s financial responsibility, and ensure accurate billing.
Ask the Below Questions to the Insurance Company
- Is the patient’s insurance policy active and in effect?
- What is the start and end date of the patient’s coverage?
- Is the patient eligible for the specific service or procedure they are seeking?
- Are there any limitations or exclusions that may affect coverage for the requested service?
- Does the patient’s plan require any prior authorization for the service?
- What are the patient’s financial responsibilities, such as co-pays, deductibles, or co-insurance?
- Are there any specific billing or coding requirements that need to be followed?
- Is the patient’s provider in-network or out-of-network for the insurer?
- Can the insurer provide information on the patient’s remaining benefits or any utilization limits?
- Are there any specific documentation or supporting materials required for claim submission?
Finally, it’s important to ensure accuracy while recording the answers to the above questions. Inaccurate information would lead to increased denials and lengthy AR cycles which would ultimately result in lost revenue and negative cash flows.