A doctor gets his income from the medical reimbursement given by insurance companies to his patients. Some patients who are not well off may not have medical insurance cover and have to pay the doctors fees themselves. Such patients may pay on an installment basis and are more likely to default. However, as per studies carried out by a reputed industry body, doctors are able to collect just half of their payments through insurance companies. This is because claiming payment requires a lot of time and effort and most doctors give up this cumbersome process. Most claims are dismissed and the receivables run into almost ninety days.

This is where you can help in medical billing work by filling the insurance forms and attaching the necessary records from the doctors consultation for each patient. The aim of medial billing is to receive payments for services rendered by the doctor. As a medical biller, you form the interface between the doctor and the insurance company. There is a huge opportunity for people willing to do medical billing work from home. For this you need proper knowledge of medical terms and an initial investment of about three thousand to seven thousand dollars. You need a computer, Internet connection a phone line and a fax machine to run your business smoothly. You need a printer to print the claims forms and to print your marketing fliers. Stock up on office supplies like toner, printer cartridge, and paper and proper envelops. You need a business checking account and a savings bank account to deposit money for your taxes. You need the latest medical billing software and must know how to fill in the various insurance forms. For electronic processing, you need to use a clearinghouse to submit your claims. You must know how to batch your claims and transfer them to the clearinghouse.

The job includes filling codebooks and filing the claims electronically or manually. You need to enter the patient demographics, prepare reports, and mail the patient reports. You must verify the patients insurance details and benefits. You must be aware of the Medicare and Medicaid guidelines and the CPT codes. Ensure that these codes match the current AMA codes. You can gain some experience with a medical biller before you venture on your own. You will need patience to pursue the insurance company to make the required payments on a timely basis. You must be aware of the procedure for filing appeals whenever necessary. Ensure that you have the necessary managed care authorization and referrals noted in the file. You will need to push patient gently to make their overdue payments. If you do not have a medical background, you can undertake a medical billing course from a reputed college. You can even take this course online from a recognized learning website. You must undergo refresher courses from time to time to stay ahead of the competition and to provide the best quality service to your customers. Ensure the housing regulations in your area of residence permit you to operate a home-based business.

The medical billing business is not easy. You will have to pursue doctors for business. For this have a proper business plan in mind and run your business like a professional. Register your business with the municipal authorities and consult your accountant for the tax implications for the business. Give a proper name to your business and trademark this name. Have marketing fliers ready detailing your area of work and expertise. You need to follow the compliance guidelines for third party billing as specified by OIG. Only take on as much work as you can handle else you will not be able to do justice to your customers requirements and the business will suffer in the process. Your monthly income depends on the number of clients and the number of patients under each client. It depends on your rate of charging, whether you take a flat monthly fee or charge per patient. You can charge three to five dollars per patient or take a six to ten percent commission monthly. You may even have a different fee structure for different clients.

Choose medical billing software from a reputed software company. He must provide you regular updates and customer support so that your business stays relevant. Ensure that the firm is not a fraud and check with the local Better Business Bureau office of the FTC website for proper verification. This is very important since you will run your entire business on this crucial software. To earn good money in this business you must have good contacts within the industry. For this visit as many seminars related to your area of work as possible. Meet people from the industry and get references for new customers. This will help you expand your business and build credibility. It is a good idea to subscribe to newsletters of Medicare and Medicaid so that you are aware of the advances in your industry.

Let us now discuss in detail the work of a medial billing company. You are essentially in the business of practice management. You must liaise with the doctors office staff to get the information from the patient information sheet. You also need a copy of the checkout slip. You must know the right codes to pinpoint errors when submitting claims. Check with the doctors office to rectify this error. Otherwise, the insurance company will reject the claim outright. If a claim is rejected you must know the right questions to ask and to appeal for the payment. You must provide for patient invoicing and a monthly patient reporting on all the doctors customers and the claim status. You may also provide for helping your client meet OIG compliance standards. You must also help the doctor upgrade his services and to become a member of different panels. Thus, medical billing is a lucrative industry with a lot of potential for growth. However, you need to adopt a professional approach even if you work from home in order to succeed in this business.