Medical Billing Forum
Billing => Billing => : ASAP July 08, 2015, 06:34:51 AM
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We just set up a billing service business and we are currently working on getting a new client. The prospective client claims their average receivable age is 90 days. From what I have read in forums, blogs and other internet articles, 90 days seems to be too long. We are looking to set benchmarks that we can share with the client and also benchmark for us to use in measuring our own performance.
What is the average AR age for private insurance, Medicare and Medicaid claims. Our prospective clients are based in California (Medi-Cal) and New Jersey (Medicaid).
Any help will be greatly appreciated.
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I receive payment in 30 days or less on clean claims with Medicare, Medicaid, and commercial payers. 90 days is way too long.
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We think so too. Thank you
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If we have a claim that is unpaid over 90 days old - it's usually an appealed claim or it's being reviewed for some reason. The majority of our claims are paid within 14-21 days - we sent 99% of our claims electronically.
Good Luck :)
Jennifer
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Same here, actually I can run report and our average is about 14-21 as well. Follow-up is set at 30 days.
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90+ AR is a sign that their AR is not in a good shape. I'd probably run denial trend reports for the last quarter to figure out top 5 denials & the root cause for each denial against major payers.
Thank you,
Chandru J.
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Excellent suggestion, Chandru!
I would want to know, if I was the new billing company AND if I was the provider, why the AR days are so out of line.
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Thank you Kristin :)
" would want to know, if I was the new billing company AND if I was the provider, why the AR days are so out of line."
That might probably be due to credentialing issues. Let me know your thoughts please.
Thank you,
Chandru J.
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You may already know this but you mentioned that one potential client is in NJ. If you are a third party billing company who is working in NJ or on behalf of a provider in NJ you must register with the State of NJ. You can find info on how to register at the following Link: http://www.state.nj.us/dobi/division_insurance/managedcare/tpapage.htm#tpb
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Thank you all for the great suggestions and/or comments. With regards to getting certified with New Jersey, yes we have submitted our application for certification and just waiting to hear back from them.