spot_img
23.4 C
New York
spot_img
spot_img
HomeInvestingHow to Increase Insurance Reimbursement Rates

How to Increase Insurance Reimbursement Rates


By Nathaniel Arana, Guest Writer

med school scholarship sponsor

There is a dynamic shift in the healthcare arena where insurance payers are willing to negotiate reimbursement rates for small and mid-sized physician groups. The reason for this is because insurance payers are starting to realize that the “bread and butter” of their network consists of small to mid-sized groups (1-10 physicians) and they have been ignoring this subset for far too long.

Insurers are also starting to realize that if they continue to ignore this segment of the network, these physicians will be forced to join larger groups that have more leverage to negotiate higher reimbursement rates. Payers understand that they have created the problem and seem to be offering the solution. They are willing to open the negotiation table—but be wise in how you negotiate your reimbursement rates.

 

Take a Deep Look at Common CPT Codes and Reimbursement

I recently worked with a neurology group of three physicians that had started the negotiation process with their largest payer. After eight months, the practice was offered a contract that was supposed to be “10% higher than current rates,” according to the payer. The practice was ready to sign until I reviewed the contract. The contract I reviewed was, in fact, an increase in aggregate of all CPT codes, but if you looked at the codes most used by the practice, those rates were lowered by about 15%. This would’ve resulted in a 15% decrease in revenue for that practice’s contract.

That’s an egregious act on behalf of the payer. It is certainly not common to encounter this scenario, but it’s one of the many nuances that must be considered when negotiating your reimbursement rates.

I escalated the negotiation to the vice president of network management. I felt it was important based on the circumstances. We were quickly presented with a fee schedule that was an increase in 18% of the most-used codes.

The takeaway is that you must be extremely vigilant and practice due diligence when negotiating with payers.

More information here:

Anatomy of a Complex Physician Contract Negotiation

 

Should You Hire an Expert to Negotiate Reimbursement Rates?

It can be worth hiring an expert to negotiate your rates. Be wary, however, because not every company that has negotiated reimbursement rates is an expert. Ask to speak to a consulting company’s past clients and ask them to provide verifiable references of practices they have worked with that are like your practice profile. They don’t necessarily need to be the same specialty, but they should be around the same size. A consultant that negotiates for larger groups doesn’t necessarily have the skills and knowledge needed to negotiate for a small or mid-sized practice.

You should also ask for examples of actual increases they were able to obtain on behalf of clients. Ask to see a spreadsheet of a previous client’s previous rates, their new rates, and how long it took to obtain those increases.

physician contract negotiation

There are too many consulting companies that promise clients the world and charge a significant amount. Follow these steps, and you can avoid working with an unscrupulous company.

If you can find a reputable consulting company to work with, it is worth spending some money to have them help you. Although you could undergo the process on your own, a good consulting company has the knowledge, expertise, and connections to get you better rates than you could get on your own. It helps to have a third party involved in the negotiation process.

 

Tips for Negotiating Rates with Insurance Companies 

If you decide to negotiate your reimbursement rates on your own, make sure you do your research.

  • Put together a formal proposal to the insurance company outlining why you deserve an increase.
  • Be sure to document anytime you have communication with the insurance company.
  • Make sure that you have a qualified person review the contract that is presented to you—you may find that there are new provisions in that contract not related to reimbursement rates that may not suit your practice.

More information here:

What to Negotiate for in a Physician Contract

 

When to Negotiate Reimbursement Rates? 

It is now prime time to negotiate your reimbursement rates. Whether you negotiate your reimbursement rates with the help of a consulting company or on your own, be sure you are being presented with a contract that is specific to the codes you use and one that is relevant to your practice.

If you haven’t negotiated your rates in the last three years, take advantage of this time to negotiate your contracts. It could mean thousands of extra dollars to your practice.

 

If you need help with contract negotiations or you’re simply looking for somebody to be in your corner while you’re taking a new job, hire a WCI-vetted professional to help you figure it out.

 

Did you recently renegotiate your reimbursement rates? Did you DIY or did you hire somebody to help? Did everything go smoothly, or was it a bumpy ride? Comment below!

[Editor’s Note: Nathaniel Arana is a nationally recognized healthcare business consultant with NGA Healthcare who works with practices to negotiate reimbursement rates and helps physicians remain autonomous. This article was submitted and approved according to our Guest Post Policy. We have no financial relationship.]



(Source)

latest articles

explore more