| Many patients come into a dental practice with | | | | insurance pays their portion, and any credit will be |
| the notion that insurance will cover everything. | | | | issued to the patient within 45 days. |
| This needs to be set straight during their first | | | | * Make sure all patients sign an agreement that |
| visit. In fact, the word "insurance" is a misnomer. | | | | they have read the financial policy and are |
| What the patient has is really a dental benefit plan, | | | | responsible for any amounts not paid by |
| which could cover all or a portion of their | | | | insurance, for any reason whatsoever. If the |
| treatment. The coverage is never guaranteed, | | | | patient is a minor, the parent or guardian |
| and there are dozens of ways in which payment | | | | becomes the guarantor. |
| could be denied even for a preventive exam and | | | | * Do not seat a new patient in the chair and start |
| cleaning visit. | | | | any dental procedure until you have verified his or |
| The patient also needs to be aware that the | | | | her insurance information. |
| dental benefit plan they have is a contract | | | | Other Tips for Improved Collections |
| between their employer and the insurance carrier. | | | | Estimate the patient portion accurately, and then |
| The dental office has nothing to do with it. The full | | | | add 10% to your estimate. Test your software |
| terms of the contract are in a document that | | | | for a variety of insurance plans and procedures to |
| their employer's Human Resource Department | | | | make sure it provides a good estimate. It is |
| would have. In the absence of this contract, the | | | | better to have a credit on the patient's account |
| dental office can only provide an estimate of | | | | and then reimburse, rather than having to bill the |
| what the insurance payment might be. This | | | | patient for a small amount. |
| cannot and will not be 100% accurate, regardless | | | | Refrain from making your financial policies so tight |
| of the software or methodology used for the | | | | that you drive patients away. Many practices get |
| estimate. | | | | frustrated by Accounts Receivable issues, make |
| Essential Steps for a Patient's First Visit | | | | an emotional decision to put in place stringent |
| During the patient's first visit, obtain the full | | | | financial policies, and are proud of the fact that |
| residential address of the patient, as well as their | | | | they collect close to 100%. Unfortunately, by |
| residential telephone number, work telephone | | | | virtue of these policies, they may have driven |
| number, and cell number. Also, obtain the name of | | | | away significant business and are completely |
| their employer as well as the state in which they | | | | unaware of the consequences of their actions. |
| are employed. | | | | Keep in mind that 98.5% of $1.00 million is greater |
| Along with the Health History Form, include a | | | | than 100% of $800,000. |
| separate Financial Policy Form that explains the | | | | Your goal in managing accounts receivables is to |
| financial policies of the office and clearly defines | | | | maximize total collections, while minimizing |
| what the patient's responsibility would be. The | | | | uncollected payments. Many dental offices lose |
| Financial Policy Form must achieve the following: | | | | between $10,000 and $50,000 annually, year after |
| * Inform patients that they must pay their | | | | year, due to deficiencies in Accounts Receivable |
| estimated portion at the time service is rendered | | | | management. By managing patient expectations, |
| (i.e., on the day of their visit). | | | | you reduce the amount of money you are leaving |
| * Inform patients that the dental office provides | | | | on the table and improve the odds of collecting |
| an estimate of the patient portion. It is not | | | | nearly all the money earned in your dental |
| guaranteed to be accurate. Indicate clearly that | | | | practice. |
| any balance will be billed to the patient after the | | | | |