What is Medical Billing?
Medical billing is the process of submitting and following up on claims with health insurance companies to receive payment for services rendered by a healthcare provider. It involves coding and classification of diseases, procedures, and treatments and submission of claims to insurance companies for reimbursement. The goal of medical billing is to ensure that healthcare providers receive payment for their services in a timely and accurate manner.
How to prepare medical claims, patient eligibility, example insurance cards, Medicare / Medicade, authorization of services, charge entry, fee schedules, claim submissions, posting ERAs / EOBs, rejected or denied claims (and their correction), secondary claims, cycle of a claim, revenue cycle, provider info needed on a claim, evaluation and management: coding and evaluations and basic components, etc,.
Medical Billing Powerpoint + Video
- What is Medical Billing? (downloadable PowerPoint, with 67 slides)
- What is Medical Billing? A Comprehensive View on How Medical Billing Works. (YouTube video)
A Comprehensive View on How It All Works
Medical billing is a complex and multi-step process that involves several key players, including healthcare providers, patients, insurance companies, and billing specialists.
A list of some of the common tasks:
- Service Delivery: A healthcare provider delivers a medical service to a patient.
- Documentation: The provider records the details of the service delivered, including diagnosis codes and procedure codes, in the patient’s medical record.
- Coding: The service details are then translated into standardized codes using systems such as the International Classification of Diseases (ICD) and Current Procedural Terminology (CPT) codes.
- Claims Preparation: A billing specialist prepares a claim, including the patient’s demographic information, insurance information, and codes for the services delivered.
- Claims Submission: The claims are then submitted to the insurance company for reimbursement.
- Payment Processing: The insurance company reviews the claim and either pays the healthcare provider or requests additional information.
- Appeal and Follow-up: If the insurance company denies the claim or pays less than the amount requested, the billing specialist may need to follow up with the insurance company or file an appeal.
- Payment Posting: If the claim is approved and payment is received, the billing specialist posts the payment to the patient’s account.
Further reading: What’s a Medical Billing Service?
Summary: Medical Billing, What is It?
Medical billing is a core part of the healthcare system, as it ensures that healthcare providers receive payment for their services and helps patients understand their insurance coverage and financial responsibilities. However, it can also be complex and time-consuming, requiring specialized knowledge and expertise.
Outsourcing to a specialized billing partner is one way practices manage this complexity without pulling staff away from patient care. A dedicated billing team stays current on payer policy changes, coding updates, and claim submission requirements that shift throughout the year, catching errors before they turn into denials or delayed payments. This kind of oversight also gives practices better visibility into their revenue cycle, since experienced billers can spot patterns in denials or slow-paying claims and adjust their approach accordingly. For practices weighing whether to keep billing in-house or hand it off, the deciding factor often comes down to whether the administrative burden is worth the tradeoff against the cost and coordination of working with an outside partner.
Co-Founder and COO of Medwave, bringing more than 30 years of hands-on experience in healthcare revenue cycle management, payer contracting, and medical credentialing.