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How to Choose the Right DME Billing Company #3

This week, we are going to take a look at third party claim switching companies. Third party claim switches generally apply to pharmacists only, but the following information should be found useful to all that dispense durable medical equipment.

By: Cindy Rushing
Category: Business:Management
: Insurance:Health
Posted: Sep 06, 2010
Updated: Sep 06, 2010
Views: 452


In article #2 in the series “How to Choose the Right DME Billing Company” we looked at four very important keys when analyzing a vendor’s viability as a billing partner. This week, we are going to take a look at third party claim switching companies. Third party claim switches generally apply to pharmacists only, but the following information should be found useful to all that dispense durable medical equipment.

Pharmacists are in a unique position since some of the medications they dispense are also considered durable medical equipment (DME). A pharmacist is accustomed to entering his or her prescriptions into the pharmacy management system and receiving online adjudication with Medicare or Medicaid. Unfortunately, most pharmacists do not realize that their DME claims do not go through online adjudication when they enter them into the pharmacy management system.

There are companies that call themselves “third party claim switching companies.” In the medical billing industry, they are known as “Switches.” They are called claim switching companies because the DME claims that are sent online through the pharmacy management system must be “switched” into a DME claim to go to Medicare Part B or to Medicaid. Why?

DME claims are not processed through a prescription plan. They must be submitted to a health plan and reimbursed using the insured’s medical benefits.

For “switching” companies that means that if it is not Medicare or Medicaid, they cannot submit to the non-Medicare or Medicaid insurance company. Why? More times than not, it is because the pharmacist has not gathered the insurance necessary. He or she only has the prescription plan information. Furthermore, if a Medicare beneficiary has not disclosed his or her secondary insurance company then the secondary claim does not crossover automatically. It is left up to the pharmacist to send the claim to the secondary insurance company or pay the switching company an additional monthly subscription fee to manage the secondary claims submissions. Many times a pharmacist will have thousands of dollars of outstanding secondary claims that could have been collected but weren’t because the claim did not crossover to the secondary insurer.

Switches are not always forthcoming in the lack of customer service they provide. The pharmacist finds it easier to enter all claims into the pharmacy management system without realizing that they are voluntarily surrendering thousands of dollars a year in claims denial and appeal management and secondary processing. SO, how does a pharmacist guarantee the recovery of denied funds and recover secondary claims balances?

Simple: partner with a full service billing company that believes customer service is an important and integral part of a client partnership.

Next week, we will compare switches with full-service billing companies. For more information, visit http://www.dme-claims.com

About Author

Cindy Rushing is the Business Development Manager for Billing Management Services and an independent consultant for the healthcare industry. Cindy has almost 20 years of experience in healthcare coupled with a degree in Healthcare Administration.

Contact Author   Author Website




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