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Correctly Issuing Discounts & Credits

There is a specific problem on the rise regarding a common concept in dental insurance billing. This problem is being overlooked in many practices, most often because of innocent oversights. However, this mistake can bring many unpleasant consequences along with it, which can have an impact on your dental practice and your reputation.

So, what’s the problem? Correctly issuing discounts and credits in your dental office. Billing an insurance company seems like a pretty simple concept in any dental practice. However, once you begin issuing credits and discounts to your patients, things can become a little more complicated.

Many offices will offer discounts for, say, 5% off for payment at the time of service. These same offices will go on to bill the insurance company for the full amount.

Insurance Companies Should Receive The Same Discounts

Any credit or discount that your practice offers to patients will absolutely need to be applied to the insurance companies as well. For example, if you offer a patient $100 off for whatever reason, many offices will do this by lowering the out-of-pocket cost for the patient by $100. Once this is done, the insurance company will be billed for the full cost of the treatment. What you need to do instead is bill the insurance company for the treatment cost, and then minus out the $100.

These mistakes are most often made innocently enough. But this doesn’t mean that you aren’t still violating provider contracts or even state laws. Depending on the severity of the case, your practice could be accused of overbilling the insurance companies or even fraudulent billing practices.

Keep your reputation and your practice safe by doing your research and making sure that any discounts or credits you offer are being done correctly. For more information on insurance issues, or for help with your office’s insurance credentialing needs, please contact Dental Insurance Credentialing.

Posted on Nov 17, 2016

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Technology has made it much simpler to stay in contact with your patients. From traditional communication methods like…
In light of the nation’s current situation, there’s no time like the present to prepare for a recession. With COVID-19…
If you’re having trouble with finances, you’re not the only one. As recently as 2014, it was discovered that dental…

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