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Binta Patel

#BillingTips 5: Collect upfront payment for deductibles and co-payments

If a patient has insurance, they will typically have a deductible and co-pay amounts that must be met before the insurance company will pay for services. Collecting upfront payment for these amounts can help ensure that the patient is aware of their financial responsibility and can help reduce the risk of denied claims due to non-payment.


#BillingTips 5: Collect upfront payment for deductibles and co-payments
#BillingTips 5: Collect upfront payment for deductibles and co-payments

To collect upfront payment for deductibles and co-payments, you can either request payment at the time of service or keep the patient's credit card on file. If collecting payment at the time of service, it is important to have a clear understanding of the patient's insurance coverage and what their financial responsibility is. This can be obtained by verifying the patient's benefits and eligibility prior to the appointment.


Alternatively, keeping the patient's credit card on file can also be an effective way to collect payment for deductibles and co-payments. Once the claim has been processed and you receive an explanation of benefits (EOB) from the payer indicating the deductible, coinsurance, or co-pay amount, you can adjust the payment accordingly. This can help simplify the payment process for both the provider and the patient, as there is no need to send invoices or collect payment after the fact.


Collecting upfront payment for deductibles and co-payments can also help improve cash flow for your practice. By receiving payment at the time of service or shortly thereafter, you can reduce the amount of time it takes to receive payment from insurance companies, which can be a lengthy process.


In conclusion, collecting upfront payment for deductibles and co-payments can be an effective way to ensure timely payment for services and improve cash flow for your practice. By either requesting payment at the time of service or keeping the patient's credit card on file, you can help reduce the risk of denied claims due to non-payment and simplify the payment process for both the provider and the patient.


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