How long should a patient balance remain past due before going to collection?

This grace period gives you time to figure out payment options before the debt affects your credit scores. Medical debts are removed once paid: While most collections remain on your credit report for seven years, medical debt is removed once it has been paid or is being paid by insurance.

A good target for allergy practices is 90-120 days. Plan to send two bills to the patient, 30-40 days apart. The third letter should be a “termination” letter that gives the patient 30 days to pay the outstanding balance or call the practice to arrange a payment schedule.

What happens if a patient pays more than the co-pay?

If a patient pays more than they are required to, the patient must be notified as soon as the overpayment is discovered. The practice has a couple of options on how to handle the overpayment, but the provider cannot legally hold on to the money indefinitely. Let’s say a patient came in for an office visit and paid a co-pay.

How to collect patient payment at the time of service?

Sometimes what the patient is able to pay at the time of service is more than you would have asked for previously. Make sure you address the entire balance, not just one payment, and then put the new payment arrangement in writing. This creates an agreement that the patient is more apt to abide by, as opposed to an oral agreement.

When to send a patient for debt collection?

You can send a patient for debt collections at any time, provided it is per your office financial policy. Most medical practices transfer accounts after 60 days. It is advisable to send the patient for collection after the determination of final insurance coverage.

When does an office make an overpayment to a patient?

Sometimes an office is reimbursed too much money for services provided, which results in an overpayment. The insurance carrier usually makes the overpayment, but sometimes the patient makes it. In either case, it is important that the overpayment be promptly returned to the appropriate person or payer.