Charge entry plays an essential role in the medical billing process. The accuracy of the revenue cycle management is determined by the amount of reimbursement the provider will receive from the insurance company. In a simple sense, charge posting is the systematic entry of service charges into the billing system.
This blog helps to provide you with a comprehensive understanding of charge posting. It highlights the significance, the difference between payment posting and charge posting, and its key elements. Reasons to outsource charge posting to a reputable medical billing company is also discussed.
What Exactly is Charge Posting in Medical Billing
Charge posting is the process of assigning the appropriate fee as per the fee schedule and chosen medical codes. Charges are recorded and entered for the healthcare services provided to patients. This step ensures that the healthcare providers accurately submit all the documents required for the billing process.
The process starts with gathering information about the services rendered. It is then verified to check the accuracy and enters the charge into the billing system. Accurate charge posting is a must to reduce the margin of error in the claims. It helps to maximize revenue by capturing all billable services.
Charge entry includes the following:
- Entering and Validating Patient Demographics
- Charge or Superbill files Posting
- Verification of Patient Eligibility
- Reminder for Missing Charges
- Claims Creation
The Significance of Charge Posting in Medical Billing
Charge posting in medical billing has paramount significance as it acts as a bridge between delivering healthcare services and financial reimbursement. The primary role that charge posting plays is revenue maximization. This ensures that healthcare service providers are properly compensated for all the services rendered to the patient.
Moreover, by adhering to industry guidelines and regulations, charge posting safeguards the healthcare provider against all legal hindrances. It plays a vital role in preventing underbilling. Thus, it ensures that all billable services are accurately captured.
A steady cash flow is possible if charges are posted accurately. It reduces the number of denials or rejections and streamlines the reimbursement process.
Difference between Charge Posting and Payment Posting
Charge posting and payment posting have distinct features and serve a specific role in medical billing. The key differences are mentioned below in a table:
|Charge posting is the process of assigning the appropriate fee as per the fee schedule and chosen medical codes.
|Payment posting is a process of recording payments in medical billing software received from various sources, such as insurance companies, patients, and third-party payers.
|The key focus of charge posting is to document the services rendered to patients. It generates the claims for reimbursement.
|The key focus of payment posting is to record and allocate the actual payments received from insurance companies. It also helps to update the patient’s account balance.
|It takes place at the start of the billing process when healthcare services are provided to patients.
|It occurs when the claims are submitted and healthcare providers have received reimbursement from insurance companies.
|In charge posting, information is gathered and verified. Data is entered, and claims are generated.
|In payment posting, payments are recorded and then allocated to the specific services.it also updates the patient account balance.
|Accurate charge posting helps to maximize the revenue for healthcare facilities.
|Payment posting ensures accurate financial records,contributing to effective revenue cycle management.
Key Elements in Charge Posting Process
The charge posting procedure consists of several essential elements that lead to accuracy, efficiency, and compliance. The key elements are:
All the vital information, such as name, date of birth, insurance details, address, etc., is gathered. Service-related data, such as the type of service rendered and the date of service, is also collected.
The gathered data is first verified to check the accuracy and alignment between the patient information and the services rendered. All the codes, such as ICD10 and CPT codes, are also verified.
Creation of Superbills
A superbill is the main source of information that helps to create claims. Superbills compile collected data and copays. These superbills are used by healthcare providers to generate clean claims. It helps the client to bill the insurance claim directly.
Claim Generation from superbills
Claims are generated from superbills, which are then submitted to the payer via the clearing house. These claims are not just documents but comprehensive information essential for the reimbursement process.
The billers reconcile charge postings with financial reports. This is to identify any discrepancies present in the claims.
Submission of Claims to Payer
The submitted claims are then checked for accuracy via the clearing house. After clearance, claims are pushed to the insurance companies for reimbursement.
Monitoring and Reporting
A mechanism is implemented to monitor the status and effectiveness of charge posting. Reports are generated to analyze the key metrics related to charge posting.
Reasons to Outsource Charge Posting to a Reputable Medical Billing Company
Expertise and Specialization
Medical billing companies have a team of expert billers and coders who know how to manage revenue cycles in an effective manner. By outsourcing charge posting, providers can enjoy the expertise without the need for an in-house team.
Accuracy and Compliance
Charge posting requires a higher level of accuracy.The healthcare provider’s own team can handle the charge posting, but there is little chance that the claims are accurate and compliant with the regulatory bodies. Medical billing companies have advanced technology and billing software that ensure precise charge entry.
Maintaining an in-house team for billing involves significant expenses for the healthcare facility. Outsourcing helps the provider convert fixed costs to variable costs. In this manner, the provider only needs to pay for the services they use.
Medical billing companies can handle the fluctuations in workload in a seamless manner. Certified billers can scale the services based on the requirements of the healthcare provider. This scalability is beneficial for facilities whose client volume changes.
Most billing companies utilize advanced billing and coding software. By outsourcing, data is effectively managed through the integration of electronic health records (EHR). This reduces compatibility issues and enhances operational efficiency.
Choose Medheave for Seamless Charge Posting
Outsourcing your charge posting to Medheave comes with several benefits for healthcare providers. The decision to trust Medheave for your charge posting is driven by compelling reasons such as:
- Medheave has more than 10 years of experience and expertise in medical billing and coding. This ensures that your charge posting will be handled with great precision and accuracy.
- The company utilizes advanced technology and software. The billing process is streamlined, which enhances the efficiency of charge posting.
- Medheave is strictly compliant with HIPAA (Health Insurance Portability and Accountability Act). This ensures that your personal data is in safe hands.
- It offers scalability to accommodate the providers whose client ratio changes everyday. Whether it’s a small clinic, an emergency room, or a large hospital, Medheave can customize its billing and coding services to match the requirements of the provider.
Contact us today and let the experts handle your Medical billing and coding procedures.
- What are the common challenges associated with charge posting?
Challenges in charge of posting include inaccurate documentation, coding errors, timeliness, compliance issues, staff training and education, price transparency, and integration with Electronic Health Records (EHRs).
- Is charge posting a one-time activity?
No, charge posting is not a one-time activity. Rather, it is an ongoing process that includes data entry, claim submission, payment posting, and denial management.
- Is charge posting different from coding?
Yes, both have distinctive processes. Coding is the assigning of specific codes to diagnoses and procedures, while charge posting is the assigning of a scheduled fee and entering it into the billing system.
- Can charge posting be possible manually?
Charge posting is possible manually. But automation through billing software and electronic health records reduces the margin of error. Hence, it enhances the efficiency of the billing process.