There are multiple ways for medical billers to charge their client, and it usually depends on the client’s choice since they are paying parties. But a thing to ponder is that every medically related work requires utmost patience, skill, and attention; hence, the billing is done on an enormous amount and, therefore, needs to have multiple ways in which billing must be done. Medical workers who work day in day out with the same client can not bill the client every time business is conducted between the two parties; hence generally, the actual payment is made either a month or two later while the company keeps on running on a credit basis.
Generally, there are three ways of medical billers charging, especially in the pharmaceutical industry. One is as a percentage of collection. The second one is the percentage of gross claims, and another is flat-free pricing. These medical billing services are charged through such ways:
Percentage of collection
In such method, the first thing to notice is the fact that billers only get paid once the doctors themselves get paid, and in the given situation billers can only render money from the insurance companies hence, these billers only charge a small sum of actual collection money which usually range from 5% to 12% depending on the amount of money they are meant to render and the type of insurance companies since with some insurance companies billers give discounts to people as well. In short, the amount of money such billers will receive will directly depend on the amount of money to be collected from the insurance companies. The more significant the sum, the bigger would be their kickback.
Percentage of claims
Using the same idea as the percentage of the total collection, in the percentage of the entire claim, the billers charge a sum of percentage depending on the number of total claims submitted to the insurance companies. The one thing that makes this method different is that payment to the billers is created when they submit the claims to the insurance companies and not when the total amount is received. This makes the billers to charge a little less than what they cost in the percentage of collection method since they need to wait until the doctor is paid hence, being a quicker process decreases the sum charged by the billers. Under such conditions, nearly 4% to 8% is charged generally by the billers since they get paid even before the doctors themselves. But similarly, the bigger the claim, the more prominent will be the kickback for the billers.
Flat fee pricing
Under such conditions, the biller is to be paid per claim submitted. This meant that no matter how big the claim is, the biller will receive the same payment even though it is significant. Under such conditions, billers usually do businesses with such doctors. They regularly claim that the billers would get an opportunity to earn a more substantial number of earnings under this condition. Under the situation, no percentages are used, and in fact, a fixed amount will depend on the experience the biller has or with the standard of work or client they have.