How to Avoid Common Medical Billing Errors
Medical billing errors are more than just clerical slip-ups they can cost practices millions and erode patient trust. The American Medical Association (AMA) highlights that coding mistakes, are a major driver of medical billing issues, costing physicians millions annually.
In this blog, I have answered key questions on common billing mistakes and how to prevent them, and why outsourcing to a trusted partner like Shoreline Healthcare Technologies is a strategic move for providers seeking error-free billing and optimal collections.
What’s the impact of patient demographic errors?
Payers mainly depend on the patient’s demographic and insurance information to verify coverage and hence a simple typing mistake in the patient's name, date of birth, or insurance ID can result in immediate claim denials or rejections. Data suggests that up to 20% of medical insurance claims are rejected due to inaccurate patient information. These errors often occur during patient registration or data entry.
This can even frustrate patients who receive unexpected bills harming practice’s reputation and trust.
What are the Best Practices to avoid data entry errors?
Double-checking the names, birthdates, and insurance details before claim submission reduces denials. Use of latest software tools to check and confirm the eligibility instantly can help reduce the errors.
- Always begin the verification process as soon as an appointment is scheduled. Try to get the complete patient demographics, such as their full legal name, date of birth, current address, and all insurance details.
- With the use of automated tools and integrated EHRs, can get details of their active coverage, primary and secondary payers, co-pays & deductibles.
- Clear communication to patients by providing an estimate of out-of-pocket costs can prevent billing surprises and improve collection rates.
Shoreline Healthcare Technologies has an integrated verification systems that provide real time access and helps to verify the patient data.
What Is Duplicate Billing, and Why it is risky?
Submitting multiple claims for the same service or procedure is considered as duplicate billing and it can lead to claim denials, overpayments, and trigger fraud investigations. It also damages the provider-payer relationships.
Solution: Occurrence of these duplicate bills can be contributed to clerical errors or miscommunication and inadequate integration between electronic health records (EHR) and billing systems. We can eliminate this by conducting rigorous pre-submission audits to identify duplicates. And also use the appropriate CPT modifiers (e.g., 76, 77, or 91) for billing repeated services on the same day.
At Shoreline Healthcare Technologies we use advanced RCM tools which flags duplicate entries.
What types of coding errors are most prevalent, and what are their consequences?
Translating the diagnoses, procedures, and services into standardized codes such as CPT, ICD-10 or HCPCS is the major domain where mistakes occur and are a leading cause of denials, accounting for a major share of all insurance claim rejections. The American Medical Association (AMA) cites failure to check National Correct Coding Initiative (NCCI) edits as a top coding mistake. Common coding errors include:
- Incorrect Modifiers: Misusing or omitting necessary modifiers can lead to claims being rejected as services appear duplicated or inappropriate for the reported procedure.
- Upcoding : Billing for a higher service or more complex one than that was actually provided is a serious compliance risk and can trigger audits and legal penalties.
- Unbundling: Separately billing for procedures that should be grouped and billed under a single, comprehensive code. This can also raise red flags for payers and can be perceived as fraudulent.
- Mismatched Diagnosis and Procedure Codes: The diagnosis code must justify the procedure code. A lack of medical necessity documented to support the billed service will result in denial.
- Outdated Codes: ICD-10 and CPT codes are being updated regularly. Using the old or incorrect versions of these codes leads to automatic rejections.
What’s the best way to ensure code accuracy?
Staying update with the evolving coding changes, training the staffs with the latest guidelines and using coding software to detect errors before submission can help us eliminate the coding errors.
We can encourage staff to get a professional certificate (e.g., from AAPC or AHIMA). Certified coders possess the specialized knowledge to navigate complex coding scenarios accurately.
Establish a better communication between the clinical staffs and coders so that they can easily clarify documentation with providers to ensure coding accuracy and medical necessity are fully supported.
Attend workshops and subscribe to coding newsletters from CMS, AAPC or AMA.
At Shoreline Healthcare Technologies we provide quarterly training for our coders to stay update with the CMS code changes and conduct regular coding audits. Our certified team of coders are proficient in assigning the correct code & modifier when necessary, thereby minimizing errors and maximizing the revenue.
Why it is so crucial to get a prior authorization, and what happens if it's missed?
Many diagnostic tests, medications, procedures, and medical equipment might require pre-approval from the payer before the service is rendered. Failing to secure this before providing the care can result in claims being denied. Such services though medically necessary will not be reimbursed without getting prior approval.
Solution: Always verify insurance coverage details and obtain prior authorizations before rendering services.
Adding checklists and integrating them into EHRs or practice management systems can help to identify services requiring prior authorization.
Consider designating specific staff members to manage prior authorization requests, ensures timely submission.
Maintain an updated database of payer-specific prior authorization rules and forms.
Shoreline’s automated prior-auth tracking system integrates directly with provider EHRs and payer portals, reducing this error rate by over 60%.
How Does Lack of Compliance with Regulations Cause Errors?
The US Healthcare Industry is monitored by a range of regulatory frameworks like HIPAA, CMS guidelines, or state laws. Any non-compliances with the regulatory will result in audits, fines, legal penalties and even exclusion from federal healthcare programs. It also undermines patient trust and practice credibility.
Solution: Conduct regular training to staffs about the latest regulatory guidelines. Perform monthly or quarterly mock audits to stay compliant. Always use trusted and secure billing systems to protect patient data.
Shoreline Healthcare Technologies have 100% HIPAA compliant systems providers need not worry about the privacy of their patient data.
How does insufficient medical documentation affect billing?
A clear and detailed clinical document serves as the legal and medical record of patient encounters and is the primary support for all billed services. Inadequate documentation such as missing patient history, insufficient detail about the reason for the visit, or a lack of clear notes on services rendered, missing signature of the physician makes coding and billing impossible. This will not only lead to claim denials but also exposes practices to audit risks and potential legal ramifications, including allegations of fraud.
Solution: Always maintain a detailed and clear record that justifies the medical necessity of procedures or services, connecting them with the patient’s diagnosis and previous history. Providers must be trained about the importance of clear and specific documentation.
Conduct routine internal audits to check whether the clinical documents align with the billed codes and also identify the areas for improvement.
What Happens When Claims Are Not Submitted Timely?
Failing to submit claims within insurer-specified deadlines, typically 90 to 180 days from the date of service, can result in denials or reduced reimbursements. Such late submissions can disrupt cash flow and increase the administrative costs for resubmissions. Providers may also lose revenue if deadlines are missed entirely.
Solution: Implement automated claim tracking systems to monitor submission deadlines.
By outsourcing your billing works to Shoreline you can stay rest assured with a stable cash flow and an optimized revenue cycle without any fear or audit or compliance risk. Our robust denial management strategy ensures timely submissions.
Sharanya Rajmohan
Content Writer
Sharanya brings clarity to the complexities of medical billing and healthcare regulations. With a knack for turning industry shifts into straightforward, actionable insights, her blogs help readers stay informed without the jargon.
Contact Shoreline Healthcare Technologies for an error free billing process.