Billing Errors and Omissions Insurance protects medical practices from defense costs of alleged incorrect billings as well as any fines or penalties resulting from overbilling. Unfortunately, errors are never fully preventable, which is why obtaining Billing Errors and Omissions Insurance is essential to protect your medical practice and your physicians. Below, the experienced insurance agents at Unity Insurance discuss Billing Errors and Omissions Insurance and why it’s important to obtain this type of coverage for your medical practice.
What is Billing Errors and Omissions Insurance?
Billing Errors and Omissions Insurance is coverage that is used to protect your practice in the event of an audit from a governmental organization, such as Medicare or Medicaid. The policy pays to defend your company and pay civil fines or penalties that result from an investigation that finds instances of improper billing in your billing records.
Why Errors and Omissions Coverage Is Essential:
This type of coverage is important because governmental organizations such as the Centers for Medicare and Medicaid Services (CMS) are able to research, audit and recoup money they have identified as overpayment. This is regardless of whether the improper billing was due to fraud or an honest error. Auditors for these organizations are incentivized through compensation at a percentage of the amount of the errors they find. While they normally look at records up to six years in the past, they can also extrapolate the data they find in their audit to all of your billings, which could lead to additional penalties.
How to Avoid Billing Mistakes:
Having a Billing Errors and Omissions policy provides protection in the event of improper billings that result in penalties, but it cannot prevent incidents from occurring. To protect your practice from billing mistakes, we have listed guidelines and recommendations to help avoid them:
- Billing begins at the start of the appointment. Prior to examining or treating your patient, verify their billing information, insurance provider, and contact information. Occasionally, billing information can differ from the patient’s contact information, so it’s important to double-check.
- During treatment or exams, be sure to document the entire appointment. Ensure you have the patient’s consent and disclose any billing requirements that may follow their appointment.
- Provide staff with essential training regarding billing procedures.
- Document all financial transactions at your practice. These records can aid in the identification of inaccuracies.
- Hire a reliable and established medical accountant to keep track of your practices’ billing statements
Speak to An Agent at Unity Insurance Today About Errors and Omissions Insurance
As a medical practice, it’s essential to have proper coverage for potential billing errors. Here at Unity Insurance, our professionals are equipped to provide your practice with the right policy depending on your company’s potential risk. To get a quote or speak to an agent today, call us at (410) 539-6642.