Medical Billing Forum

Starting a Medical Billing Business => Starting Your Own Medical Billing Business => Topic started by: ChrisBear2 on July 16, 2009, 08:40:20 PM

Title: Business License
Post by: ChrisBear2 on July 16, 2009, 08:40:20 PM
I am researching what it will take to start medical billing from my home and ran across your forum. While there is a wealth of information on here, I have not seen any topics discussing the legal aspects of starting your own company. Do you have to obtain a business license to provide outsourced medical billing for physicians from your home (especially when it comes to dealing with a clearing house service or insurance companies)? Do you also need an NPI or tax ID number?

Any information would be greatly appreciated!

Title: Re: Business License
Post by: PMRNC on July 16, 2009, 09:04:33 PM
There's a startup factor with any business. Yes you have to register your business in the same way you would any other.
You will also need Errors & Omissions insurance (kind of like malpractice) and you will want to check your state and city/town zoning, etc.
You can use your SS# if you plan to be a sole-proprietor but I recommend a tax ID and it wouldn't hurt to consult with a tax specialist or accountant on that issue. Some incorporate, some form LLC's, check with someone better in that area to guide you.
You don't need an NPI, your clients will have NPI's. Each client you will setup with their own information with the clearinghouse, etc.

Title: Re: Business License
Post by: Pay_My_Claims on July 17, 2009, 06:47:48 AM
well the E&O is not "needed" to have the business, but it is HIGHLY recommended. One reason it is hard to tell people the legal aspects of starting your own business is because "legal" issues are involved. As Linda stated, start our with your local city government. They can tell you what you need to start from home. I had to do a Home Occupancy Permit, then get my license. Everything else is personal preference. I don't have to have this or that, but for my peace of mind, I prefer the safety net!!
Title: Re: Business License
Post by: midwifebiller on August 03, 2009, 10:30:10 PM
I have had trouble finding E&O insurance since I am a small business.  Any recommendations?

Title: Re: Business License
Post by: PMRNC on August 04, 2009, 08:38:14 AM
E&O depending on where you are might be referred to as something different here are some other things you can ask your agent about:   Quai Tam, Business liability, or Business Malpractice.
Here is the name of a company that will scout out policies and give you a few different ones to choose from. NAPLIA  They have a special form for medical billing companies as well.
The cost will vary, and you might want to check with your own agent first for potential discounts.
When I was in NJ I paid $1300 a year, I'm paying $1450 a year now and have better coverage (go figure?)
So that's why NAPLIA is good, they will go out and scout the companies and give you a few to choose from.
Title: Re: Business License
Post by: midwifebiller on August 07, 2009, 12:28:26 AM
Thank you--I will definitely contact them.