Missing Piece Blog

Why is Payment Posting in Medical Billing Important?

Medical billing may seem like a simple process to an outsider: submit the claim, and the provider gets paid. Unfortunately, it is not that simple. Many steps are involved in the revenue cycle management process, including posting payments and reconciling accounts is necessary to ensure that a provider is receiving all payments to which they are entitled. 

Our team at Missing Piece explains what payment posting is, how it works, and how we can assist an ABA consultation and service provider with this part of the billing process.

What is payment posting in medical billing?

Payment posting simply refers to the recording of payments in medical billing software and how it allows providers to view payments from Explanation of Benefits (EOBs) and patients, as well as insurance checks from Electronic Remittance Advice (ERAs). The process helps provide the service provider with financial oversight so that any issues can be resolved as quickly as possible.

How payment posting works with medical insurance

After claims are submitted to the insurance payer, they are processed and adjudicated and then either paid or denied. A document, such as an EOB or Explanation of Payments, also known as an EOP, in medical billing, is sent to the provider and the member. Some providers may deposit the check and move on.

However, an experienced revenue cycle expert knows that payment posting and account reconciliation is a critical step in the process for the following reasons:

  • Patient Balances – Many claims have assigned patient responsibility.  The account must be reconciled correctly and the balance must be billed to the patient promptly. 
  • Reviewing Denials – Accurate posting of remittances or EOBs is necessary for the Accounts Receivable staff to work denied claims. It also helps identify problems with payers that may impact multiple patients. 
  • Identifying Internal Issues – Reviewing payment and denial information will reveal  internal process issues such as prior authorization issues or coding issues, so those issues can be prevented in the future and possibly remediated for past claims. 
  • Reviewing Write-offs and Adjustments – Checking write-offs and adjustments against fee schedules and policies may also disclose errors in payments. 
  • Secondary Claims – Many patients have multiple payers. Quick turnaround of EOBs from the primary payer to secondary or even tertiary payer will result in faster complete payment of the claim. 
  • Data Analysis – Compiling payment and denial information is a tool for companies to analyze their overall business operations. It can help with revenue forecasting and business strategy and use the information to improve overall operations. 
  • Reconcile payments with ERAs/EOBs – Reconciling the incoming checks, credit card payments, and electronic funds transfer with the statements from payers is imperative to safeguard that all funds have been received. Funds could have been misrouted or checks lost. 

Get payment posting assistance with Missing Piece ABA therapy billing services

Do posting payments and managing those details take away too much focus from the day-to-day running of your practice? Missing Piece Billing and Consulting offers specialist ABA billing services for ABA therapy and behavioral health providers with the complete revenue cycle management process, including how to bill insurance for ABA therapy when multiple insurance providers are involved, or ensuring the correct ABA codes are used in specific scenarios. 

We also have an entire department dedicated to posting payments and ensuring they post payments promptly. This allows the Accounts Receivable team to work on outstanding claims, or the Patient Statement department to bill the patient for the balance due in a timely manner and ensure that your practice is paid more quickly and more accurately. 

To learn more, set up your free Revenue Cycle Analysis review today with one of our consultants by contacting us online or by phone at 765-628-7400.