5 Medical Billing Errors You Must Avoid

5 Medical Billing Errors You Must Avoid

Medical billing and revenue management are one of the most important aspects of a practice’s financial health. However, these processes are often prone to errors. To avoid these errors, it is important that you understand what these errors are.

Upcoding

Upcoding refers to unintentionally adding a service on the bill that was not a part of the services rendered. This can inflate the patient’s bill, for example, overcharging for medications. This is considered illegal and can not only lead to claim denial but also persecution.

Balance Billing Error

A claim may be even for the smallest mistake. Balance billing errors occur when the patient is charged a medical bill for an existing balance after the insurance company has negotiated with a health service provider. Your billing staff should check with the insurance company whether the medical bill is covered under the insurance policy.

Duplicate Billing Error

Errors in duplicate billing occur in a medical billing service when you are being billed for a particular service for multiple numbers of times. This type of error can surface if, for instance, a doctor and a nurse charged you for a specific medication or service without knowing that the other had already billed you for such service. To avoid this type of error, make sure you go through your medical bills and lodge your complaints to the Medical Billing Service provider in case of any irrational medical billings.

Undercoding Error

In a medical billing service, an Undercoding error occurs when a patient is not charged or charged less than the services rendered. Your medical billing staff may unintentionally undercode bills due to lack of knowledge or being overburdened. This type of error will not only reduce your revenue but it is also illegal.

Wrong Medical Information

Incomplete information about a diagnosis may lead to a wrong medical code being entered in the medical billing. Such medical billing errors can cause the insurance company to reject a claim for ‘lack of medical necessity.’

A trusted medical coding and billing service, with their skilled coders and billers, can prevent such errors and improve your practice’s revenue.

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