It has become common among users to turn toward alternative financing when they need to pay for medical services that are not covered by their insurance. Care credit card is one of such options allowing individuals to meet their commitment in this regard.
The Fundamentals of Care Credit Card
Out-of-pocket payments for health care services have reached a staggering amount in the recent past and are growing about 5% every year, according to CMS. With the rise in this amount, the need for suitable ways to pay such bills is also growing.
Health care cards are being marketed by medical providers to individuals for covering medical expenses only. This can be used for covering select medical procedures that are not covered by insurance. Moreover, they are useful in covering portion of a medical bill not covered by insurance, such as deductibles.
More number of health care providers are finding it difficult to collect pending medical bills. Care credit cards are found to be a way to keep such bills from going into collections. Apart from the fact that care credit cards can only be used for covering expenses related to health care, they are also basically credit cards. This necessitates proper caution to be exercised in using the same.
What Consumers Need to Watch For
The following factors need consideration while trying to make use of care credit cards:
Retroactive interest rates
o With late payment, the introductory interest rate tends to skyrocket. In the case of some cards, higher interest rate may be retroactively applied. Card issuers may sometimes shorten payment cycles without notification to cardholders. Those missing a payment deadline end up paying their bills late inadvertently, thus triggering an unexpected jump in interest rate
Payment before getting services
o Upfront charging by certain health care providers is bound to happen at some point of time. In such cases, if patients end up not receiving or requiring some or all the services, or if the provider winds up business, patients will have to struggle for reversing the charges
Deciding during a vulnerable period
o Marketing care credit cards to people who are sick and require medical attention is not the right practice. Individuals amid a medical crisis rarely assess or compare alternative financing options
The following tips have to be borne in mind while using medical credit cards:
Get proper estimate on the cost of service and find how much your insurance policy will cover. See if any discounts are available in case you are required to bear the full amount.
Inquire and understand if direct payment to provider is possible over time. This way, you may avail better payment option than opening a line of credit
Upfront payment for multiple treatments must be avoided. Paying one at a time is better.
Go through the terms and conditions before signing up for care credit card.
Numinatrans has been providing reliable medical billing solutions to medical practices since more than a decade. You may visit our website www.numinatrans.com for more details.
Are you seeking ways to stop revenue loss caused by too many days in accounts receivable? Are you in need of controlling the constantly evolving organism of your accounts receivable? Here are certain simple yet effective steps to establish an acceptable outstanding balance!
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Medical Account Performance Evaluation
General rule of thumb is that your monthly accounts receivable in never above 15 times your monthly charges. During practice analysis, you need to see whether you are able to collect more AR. Measuring the number of days it takes for collecting payments is one common way of measuring AR in medical practices.
Reduce your Practice AR by following these simple steps
The following strategies enable practices to manage outstanding AR balances effectively:
Shortening Review Cycles
o Frequent comprehensive AR Review helps effectively tackle your balances
Learn rules of engagement
o Upon filing clean claims, Medicare reimbursement may be expected within two weeks of claim receipt. Regardless of the payer, practices must be well aware of the filing rules and they need to initiate relevant procedures for consistently meeting those benchmarks
Engage with Payer Representatives
o It is essential to establish good relationships with payers- most of them have representatives who are helpful in resolving issues quickly – it is better to anticipate changes and proactively manage them rather than trying to tackle them after they hit the AR stream
Stringent Patient Account Policies must be in Place
o In today’s modern health care scenario, it is imperative that practices carry strict patient account collection policies – they ensure the financial stability and thus the very survival. Practices must know their patients and understand when it is essential to press for payment
Staff need to be trained to manage collection efficiently
o Training staff to make use of appropriate tools and technology and discuss payment options with patients will improve collection – online tools help estimate coverage and verify unmet deductible balances
Why Numinatrans?
Numinatrans has been relentlessly helping clients to shorten their AR days and boost profitability since several years. We have a team of expert billers and coders who will effortlessly bring your practice back on track.
We help you understand the dynamic nature of your AR; we help you gain control over your practice cash flow. Contact Numinatrans for effective revenue cycle management.