Is Denial Management a Major Problem?
Did you know that Claim Denials and Claim Rejections are often used interchangeably? How do you think Healthcare Billing Companies manage their claim denials and rejections during lockdown?
Healthcare Billing Companies check for errors while submitting claims to the insurance companies. Yet they meet denials those can at times be a huge loss for the provider and the company.
Sometimes the submitted claims are rejected and denied affecting the reimbursements. Claim denials and rejections are most commonly misunderstood in the medical billing industry. It can create very costly errors and have a negative impact on entire Revenue Cycle Management system.
Difference between Claim Denials and Claim Rejections:
- The submitted claims that have been received and processed by the insurance companies but marked as denied claims.
- These claims most frequently contain errors in pre-authorization or lack of pre-authorization details that was identified after processing the claim.
- Some denials include, loss of information, non-covered services, inaccurate details of patient and services which the insurance companies’ policy does not cover.
- Denied claim can’t be resubmitted, it needs a research in order to determine why the claim was denied, so it can be appealed or reconsidered.
- If the claim is resubmitted without any reconsideration or an appeal, it will be mostly denied as a duplicate costing more time and revenue loss.
- Healthcare Billing Companies takes effort to correct the errors and appeal the claim to the insurance company for processing.
- This can consume time and also be costly along with lot of resources to get the exact reason for the claim denials.
- Time is a major factor while submitting the denied claims. Every insurance company has certain time limit for sending a corrected claim.
- If the healthcare billing company fails to meet the timeline, the claim will be denied again for the timely filing.
- This can result in unpaid claim which becomes provider liability.
- The Claims those doesn’t meet the billing guidelines of the clearing House, repeatedly falls into claim rejections.
- The submitted claim usually contains errors those were found before processing or accepted by the insurance company. This is termed as “Claim Rejections”.
- Rejected claims can typically be the result of a coding error, misunderstood procedure, inaccurate ICD codes and termed patient policy.
- These claim rejections can’t be processed by the insurance companies as they would not have received or entered in their computer systems. So, claims those are not received bounces back.
- Healthcare Billing Companies resubmit once the errors are checked and corrected. Those errors can be patient’s insurance ID number. Such errors are easy to be corrected and submitted as soon as possible.
- Accurate medical documentation is a crucial factor of healthcare billing companies in the industry.
- Healthcare providers utilize these detailed medical records for reimbursement when the claim is in trouble.
- Even if the claim doesn’t reach the insurance companies, the time to file the claim is very important.
- The rejected claims should be filed again within the payer’s timeline or would result in revenue loss.
Slow down your denials for the submitted claims by following the below.
9 easy tips to reduce Claim Denials and Rejections:
Use Automated Solutions:
- Human errors can be really troublesome. The more we can remove human errors, the fewer denials we will deal with.
- EHR solutions with specialized software that can self-code accurately without any flaws, increases reimbursement levels.
- If these claims are properly processed at the first attempt, revenue growth can be witnessed.
Check Patient Information:
- As mentioned, in many cases, the common cause for denied claims like inaccurate information, errors in pre-authorization report are simple to fix.
- Use a patient portal that updates their information. Even one error in a claim can lead to denial.
- Take time to verify and check Patient information to reduce instances of denied claims.
- Keep the billing team updated about the policies and educate staff to improve patient data quality.
- A call prior to patient visit can be informative with all the required details on patient insurance policy.
Learn from Previous Rejections:
- If proper data has not been established, it can be cause for claim rejection.
- EHR offers insurance companies list which is applicable on all insurance types and payer IDs as well as other options too.
- Well-Organized, this process will reduce the rejection cases in the future and increase revenue flow.
- Tracking and analyzing the trends in the payer’s rejections and denials are also important.
- This helps to differentiate denials and rejections which makes it easy to learn where the problem occurred and fix it immediately if they are common.
- Deadlines are part of system and it’s important for healthcare billing companies to follow the deadlines according to insurance companies’ policy.
- If not followed, they might affect the claim filing as well.
- Healthcare Billing Companies must insist their team to file the claim before their timely filing limits or deadlines.
- This ensures if submitted claims are processed with no delay and also fits with proper CPT and HCPCS codes if possible and necessary.
- Optimizing claim management will be brilliant to begin with experts and well trained medical billing and coding team.
- It can help resolve denial and rejection problems quickly by also decreasing the chance of causing errors.
- If claims denials and rejections are low, healthcare providers’ revenue will be at no risk and in fact might result in revenue profits.
- Professional medical billing and coding services ensure and keep your revenue cycle moving successfully.
Familiarize with Clearing House:
- Clearing House is an essential partner in the claim filing process.
- From assisting you with insurance companies to explaining the cause for rejections in detail, working with clearing House becomes constant.
- Maintain a genuine relationship with the clearing House and build a strong contact that will nurture and improve the processes and benefit both the groups.
Understand Claim Format:
- Many healthcare billing companies using EHR solutions send their claim or submit them through a standardized format.
- For a denied claim, learning and understanding the claim format will make it easier to rectify the problems and errors.
- In many healthcare billing companies and practices, the claims are submitted in ANSI837 and understanding on this allows applying ANSI loop and segmenting references which is more efficient than sifting through HCFA1500.
Regular Follow-up on Denials:
- The submitted claims have to be followed up on a regular basis or else those can get misplaced and sidelined.
- Keep a track on every claim and follow them, the denials and rejections can be corrected and resubmitted on a scheduled appeal.
- When a claim is denied and rejected, it’s easy to find the mistake and realize where the problem arises.
- Revenue growth can be experienced as the claims won’t be missed and revenue loss won’t occur.
- It can be evident and challenging to meet the denials with the trained staff when compared to medical billing and coding experts.
- It’s often most cost effective to outsource the medical billing and coding services to healthcare billing companies and rely on services of claim denials experts.
- Healthcare billing companies will maintain perfect denial management services with professionals who dedicate to learn to interact with insurance companies and understand the reason behind the rejections and denials.
- Outsourcing provides high level of customer satisfaction and takes the responsibility. As a result, healthcare professionals will have more time to concentrate on other aspects of maintenance and better patient care.
Hope you are satisfied with the information provided about the denial management. If you want to suggest or add anything, please comment below. For more queries and information on healthcare, please subscribe to our blog.