A Brief Introduction to Yearly Deductibles
The deductible is the patient’s out-of-pocket payment for healthcare services before insurance coverage starts. The Medicare Part B annual deductible for 2024 is $240.00.
ABC’s Deductible Collection Strategies:
Verify Insurance Information: ABC provides training to the front-office staff on the verification of insurance information, including deductible amounts, to educate patients about their financial obligations.
Clear Communication: Clearly communicate deductible information when scheduling and confirming appointments to assist patients in preparing for their financial responsibilities.
Collecting upfront: Start collecting the deductibles upfront at the time of visit. Calculate the payer allowed amount, considering the deductible the patient has met so far:
- If the payer allowed amount is $100.00, and the patient has $50.00 left to meet from the yearly deductible, collect $50.00.
- If the payer allowed amount is $100.00, and the patient has $150.00 left to meet from the yearly deductible, collect $100.00.
|
Payer allowed
|
Deductible left over
|
Amount to collect
|
|---|---|---|
|
$100.00
|
$50.00
|
$50.00
|
|
$100.00
|
$150.00
|
$100.00
|
Saving patient card on file and processing payments: The automation of payment processing ensures prompt payments and minimizing delays or revenue gaps. (A consent from the patient is mandatory). Click here to download a sample patient consent form
Use Technology: Leverage technology to streamline the collection process. Implementing online payment options or mobile apps can enhance the efficiency of collecting deductibles.
Why Collecting Deductibles Upfront Matters?
Collecting deductibles upfront provides many advantages for both patients and healthcare providers:
Financial Transparency: Informing patients about their deductible obligations upfront empowers them with financial transparency, aiding better financial planning and reducing surprises.
Enhanced Cash Flow: Collecting deductibles at the time of service ensures a steady cash flow for your practice, positively affecting financial stability.
Improved Patient Relations: Open communication about deductibles builds trust, demonstrating your commitment to transparency and strengthening patient-provider relationships.
ABC’s Commitment to Your Financial Well-being:
ABC’s mission is to ensure a seamless healthcare experience for private practices and hospitals. Our team is here to assist you in understanding your deductible obligations and exploring convenient ways to manage them.
Raja Chandra
Raja Chandra is the founder & president of Apple Billing and credentialing, a medical billing and credentialing company. He has a bachelor's degree in bio-medical engineering and has been working in medical billing and healthcare management since 2003.