| Everybody hears about how the medical billing industry | | | | Prudential, paying a salary of $35,000 a year for a |
| is robbing us blind. Medical costs are out of control, or | | | | claims processor is not such a big deal. But when |
| at least so they say. Medical billing software, just to be | | | | you're talking about a non profit organization like |
| able to run your medical billing practice, costs an arm | | | | Medicare, which is actually running in the red and in |
| and a leg. Medical billing agencies like Medicare and | | | | danger of shutting its doors, paying these people that |
| Medicaid, Blue Cross, Blue Shield and even private | | | | same $35,000 a year is insane. But they have to. |
| insurance companies are ripping us off left and right. | | | | Why? Because if they don't, where do you think |
| Nobody wants to pay claims, or at least that's the | | | | they're going to go? To the private sector of course. |
| perception. But what's the reality? Does anybody who | | | | So salaries must be competitive. |
| is doing the complaining really know? Medical billing | | | | What about turnaround time for claims. Yes, we all |
| statistics are posted all over the place, especially with | | | | complain that our claims take forever to get paid. But |
| the Internet being so filled with information. But does | | | | what we don't understand is that the people who are |
| anybody really take the time to look up the stats to | | | | really getting killed are not the patients, because they |
| see how bad things really are? | | | | will eventually have their claims paid, but the billing |
| For example. Did you know that it costs between $8 | | | | companies. Turnaround time for paper claims can be |
| and $10 to process the average medical claim? Now | | | | anywhere from 30 to 90 days or more and this really |
| maybe if you're charging a procedure that costs | | | | puts a strain on a company and its cash flow. So as |
| thousands of dollars, that's not such a big deal. But | | | | bad as the patient may be having it, the medical billing |
| what if you're putting in a claim for a $50 walker. | | | | company is suffering big time. |
| That's almost 20% of the total cost of the item, which | | | | When you add all this to the cost of just starting a |
| is absolutely absurd. So yes, in this case, costs are | | | | medical billing agency, you can see that the industry |
| crazy. And the problem is very simple. To process a | | | | itself is behind the 8 ball before it even begins. Throw |
| claim, the same procedure must be followed, | | | | into this mix doctors who back in the 60s charged $15 |
| regardless of what the service being billed is. If the | | | | for a doctors visit, now charge anywhere from $50 to |
| walker could be processed at a cheaper cost, no | | | | $100 for a visit and what you end up having are costs |
| problem. But that is just not the reality of it. | | | | that are totally out of control. |
| Forgetting about claim processing costs, what about | | | | This is a spiral that is most likely to continue until people |
| salaries? Well, for the fortune 500 company like | | | | can no longer afford to get sick. |