FREE Electronic Claims Through Clinic Pro Software
Clinic Pro Medical
Software submits electronic claims FREE to Medicare and BCBS. There are no
clearinghouse fees when you bill direct. In addition, commercial carriers
can also be sent free of charge. Clinic Pro Medical Software can send
claims free because it is HIPAA compliant.
Electronic Claims -- The "Bottom Line"
Unless you operate a cash practice, you cannot collect 100% of your fees. That
is a fact of life. Unfortunately, most chiropractic physicians cannot afford to operate a
cash practice so they are forced by economic reality to submit insurance claims.
To survive as a businessperson, you must maximize your insurance reimbursement
while minimizing the costs of collecting that same reimbursement. Filing
insurance claims electronically can substantially reduce the collection costs
and create a healthier bottom line.
There are three major cost
advantages of electronic claim submission:
per claim. There is an automatic "fixed cost" per claim when filing hardcopy
claims. Even if the computer prints your hardcopy claims so that they are
not being typed individually, the costs add up quickly. Each hardcopy claim
requires computer time, printer supplies and paper or the HCFA form itself.
These supplies are relatively inexpensive, about .07/claim. However, when
you add the labor costs required getting HCFA forms ready for mailing
(preparing the printer, folding, stuffing envelopes, filing), the costs
accumulate quickly to an estimate of 65/claim. Once you add postage
at.33/claim, the average hardcopy claim costs to $1.00- $1.50 to send. If
you get reimbursed $50.00 on your $80.00 claim, it has cost 3% to 4% of your
reimbursement to collect your money. Of course, this scenario assumes that
there were no errors and that the insurance company pays your original
claim. If the original claim gets rejected, the cost of collecting your
money escalates. Let’s assume that your office is very efficient and that it
only costs .60/claim to file hardcopy. Using this conservative estimate: 500
claims/month x .60 = $300/month. Obviously, the monthly cost increases with
each claim because it is a fixed cost. By comparison, unlimited electronic
claims can be sent free with the right software or at minimal charge of
approximately $25/month. There is no fixed cost per claim when filing
electronically – that creates a huge cost differential even for small
turnaround. Hardcopy Medicare claims are held for 27 days from the day they
were received; electronic Medicare claims are processed in 14 days.
Likewise, there is a similar difference in turnaround time for commercial
carriers. A quicker turnaround means that the money received could be
invested; money that is invested draws dividends or interest. In simple
economic terms, that is the "time value" of money. By allowing insurance
carriers to hold your money for two to four weeks longer, they earn the
interest -- not you. Because this cost is intangible, it is more difficult
to calculate. On a monthly income of $20,000, the cost of lost interest
income could range between $100 - $300/month.
feedback on edit/rejections. There is nothing more frustrating than waiting
six weeks for payment of a hardcopy claim only to find that it was rejected
due to a clerical error. Then, the process begins again. You have to create
a corrected paper claim (incurring the same fixed costs as the original) and
wait another six weeks (allowing the insurance company to earn more interest
on your money.) With electronic claims, you can usually receive feedback on
the status of the claims within 24 hours. If a claim contains errors that
will cause rejections, it can be immediately corrected and re-submitted. No
wasted time, no duplication of effort. The cost of rejections fits into the
intangible category since it incorporates both of the costs above.
Most practitioners accept the
premise that filing for insurance reimbursement is an economic reality; the
method of claim submission becomes the question. Take a moment to crunch through
the numbers for your office. We have prepared two very conservative estimates of
cost depending on the volume of monthly claims. If you actually calculated the
cost of filing hardcopy claims, it would probably be much higher than the
|1000 Claims per Month
|Time value of held funds
|Avoidance of rejections
Electronic claim submission is very efficient – it is the "bottom line" answer
for most medical or chiropractic offices. It is the key to effective
practice management software.
Call us about our FREE electronic billing: EAST (800) 351-2776
WEST (877) 351-2776