Effective Follow-up Processes for Medical Billing

Bonnie J. Flom • April 25, 2018
Medical Billing

Following-up on unpaid claims can be one of the most frustrating parts of medical billing. Follow-up really trails the old 80/20 principle. 80% of the claims get paid the first time, but the 20% that don’t get paid the first time takes 80% of your time. The trick to making follow-up more streamlined and efficient is to categorize your outstanding claims within three buckets; contract payers, non-contract payers, and self-pay balances.

Let’s start by reviewing the difference between your contract payer and non-contract payer claims. Contract payers’ claims are claims that you physically have a signed contract with the insurance carrier. Most clinics have between 6-12 signed insurance contracts. For example, a typical clinic would have a Medicare, Medicaid, BCBS and perhaps a couple HMO contracts. Whereas, if you look at any insurance payer list from a clearinghouse, you will see there are thousands of insurance companies; which tells you there are potentially dozens of non-contract insurance companies to which you may bill.

Why does this make a difference? Well, if your clinic has a signed contract with an insurance company, both the clinic and the insurance have mutual obligations to one another. The clinic has agreed to bill a claim, write-off contract adjustments and follow-up on unpaid claims. The insurance has agreed to adjudicate the claim, pay the clinic directly and respond to claim inquiries.

Now, contrast that with a non-contract insurance company. Non-contract insurance companies are not contractually obligated to pay the clinic directly or even to respond to inquiries about claim status. For example, two larger insurers that will not respond to non-contracted clinics are Medica and Blue Cross Blue Shield.

Understanding the difference between contract and non-contract insurance companies is the secret to saving time in the follow-up process. Given the fact that non-contract insurance companies do not have an obligation to respond to the clinic’s request for payment, the clinic is really doing courtesy billing on the patients’ behalf. So, after 30 days, if a non-contract insurance has not paid, you would be wise to bill the patient directly and save your time to follow-up on contract payers where you are contractually obligated to resolve outstanding balances.

Finally, to wrap this up, make a follow-up flow chart for each of the three buckets of outstanding claims; contract, non-contract and self-pay.

If it is a contract payer, at 30 days, call the payer or investigate the claim online. You are looking to resolve this claim as quickly as possible by determining if the balance is due from the insurance, the patient or if the clinic needs to return information. If the balance is due from the insurance, call the insurance and document the Person, Place, Phone number you called, along with the Action Needed and Action Taken. Get a commitment from the insurance to pay and add a note to your system if the balance is due from the insurance. If the balance is due from the patient, send the patient a statement and follow your self-pay flowchart. If the clinic needs to return an item, do that as fast as possible and document it.

If the balance is due from a non-contract insurance, at 30 days, send a statement to the patient and follow your self-pay flowchart.

Finally, your self-pay flow chart should have you sending no more than two regular statements to a patient and then sending a pre-collection letter and turning the claim to a collection agency. Statistics show that if a claim isn’t paid by a patient within 90 days, the likelihood of it getting collected is slim without the help of a collection agency.

Billing Buddies ® Bullet Points is brought to you by Billing Buddies. Visit our website at http://www.billingbuddies.com. I’m your host, Bonnie J. Flom. I have 34 years of medical billing experience and am a Certified Medical Reimbursement Specialist through the American Medical Billing Association. I can be reached by email at bonnie@billingbuddies.com or you can call and text me at 612.432.2366. Thank you for listening and happy billing.

 

Billing Nightmares with ARHMS in Minnesota? Here’s the Real Fix Nobody Talks About

By Bonnie Flom • April 21, 2025
Fact: ARHMS providers across Minnesota – especially in Minneapolis – are spending more hours than ever on billing, and it’s affecting client care. Between compliance rules, rejected claims, and slow payments, many teams are overwhelmed. But what if ARHMS billing didn’t have to be a full-time job? Table of Contents: ● The Real Problem with ARHMS Billing Today ● What Makes ARHMS Billing in Minneapolis Especially Challenging ● How Outsourcing Isn’t Just Easier — It’s Smarter ● What Billing Buddies Does Differently ● Quick Comparison: DIY Billing vs. Partnering with Billing Buddies ● Final Word + How to Connect The Real Problem with ARHMS Billing Today Let’s be real: ARHMS billing is no longer just about submitting claims. It’s about understanding state-specific codes, documenting every move correctly, and constantly adjusting to DHS updates. If you're still relying on manual methods or a stretched-thin team, the odds of losing revenue go up fast. What Makes ARHMS Billing in Minneapolis Especially Challenging? Minneapolis is fast-paced, and so is the demand for mental health and habilitation support. But here’s the kicker — more clients mean more billing. More billing means more room for error. If even one code is off or a note is missing, your claim can get stuck for weeks. Providers here aren’t just looking for help — they need speed, accuracy, and someone who actually gets local systems. How Outsourcing Isn’t Just Easier — It’s Smarter? Outsourcing ARHMS billing isn’t just about handing off tasks. It’s about: ● Reclaiming Time: So your team can focus on what they’re best at — client care. ● Reducing Stress: Say goodbye to rejections, late filings, and compliance fears. ● Improving Cash Flow: Claims are submitted right, the first time. What Does Billing Buddies Do Differently? We’re not a generic billing company. We’re local experts who specialize in Minnesota Medicaid systems — especially ARHMS. With Billing Buddies, you get: ● A team trained in Minnesota-specific ARHMS codes and DHS guidelines ● Fast turnaround on claims and re-submissions ● Clean reporting so you always know where your money’s at ● Support that’s personal — we work with your staff, not around them We work with providers throughout Minneapolis and beyond — helping small teams grow by giving them their time and cash flow back. Quick Comparison: DIY Billing vs. Billing Buddies

Is Your Mental Health Practice Losing Money? Here’s How Credentialing Services Can!

By Bonnie Flom • April 21, 2025
Over 40% of mental health professionals in private practice report delays or denials in insurance reimbursements due to credentialing issues. Without proper credentialing, therapists and counselors risk being excluded from insurance networks—directly impacting patient access and practice revenue. That's where credentialing services for mental health come in. For providers in Minnesota and beyond, working with a dedicated billing partner like Billing Buddies can make the difference between reimbursement success and financial stress. Table of Contents: What This Blog Will Cover What Is Credentialing in Mental Health? Why Is Credentialing So Important? Common Challenges in the Credentialing Process How Billing Buddies Simplifies Credentialing for Mental Health Providers Benefits of Outsourcing Credentialing Services Credentialing vs. Re-Credentialing: Know the Difference The Minnesota Advantage: Why Local Expertise Matters Conclusion + CTA What is Credentialing in Mental Health? Credentialing is the process of verifying a provider’s qualifications—including licenses, education, training, and work history—to ensure they meet the standards of insurance networks. It’s mandatory if you want to be reimbursed by insurers like Blue Cross, Medica, UCare, or UnitedHealthcare. Why is Credentialing So Important? Without proper credentialing: ● You cannot accept insurance. ● Your claims may be rejected. ● You miss out on a major client base. And here’s the kicker—credentialing takes time (30-120 days) and must be accurate to avoid denial. Common Challenges in the Credentialing Process Challenge: Incomplete Applications Missed Deadlines Lack of Follow-Up Misunderstanding Payer Requirements Confusion Between Credentialing & Contracting Impact: Delays or denial in approval Need to restart the process Long waiting periods without updates Leads to rework and frustration Payment delays or lost payer relationships How Billing Buddies Simplifies Credentialing for Mental Health Providers? Billing Buddies offers personalized credentialing services tailored for mental health practices. Our team: ● Prepares and reviews all documents. ● Submits applications to insurance networks. ● Tracks application status with regular updates. ● Handles payer communication. ● Maintains re-credentialing timelines. You focus on patients. We focus on paperwork. Benefits of Outsourcing Credentialing Services When you work with credentialing pros like Billing Buddies, you: ● Speed up approvals ● Reduce errors and rejections ● Improve insurance payouts ● Save administrative time ● Avoid burnout from non-clinical tasks It's a smart move for solo providers and group practices alike. Credentialing vs. Re-Credentialing: Know the Difference Credentialing is the first-time process of getting approved by an insurance network. Re-credentialing happens every 2-3 years to verify that your information is still accurate. Both are necessary—and both are time-sensitive. The Minnesota Advantage: Why Local Expertise Matters? When you choose Billing Buddies, you're not just getting generic credentialing services. You’re partnering with a team that understands mental health billing in Minnesota , including local payer systems, Medicaid requirements, and state-specific nuances. We’ve helped therapists across Minnesota get credentialed quickly and keep their payments flowing. Don’t Let Credentialing Hold You Back Whether you're launching your private practice or expanding your network, proper credentialing is essential. And with so many moving parts, it’s easy to get overwhelmed. That’s where Billing Buddies steps in—to take credentialing off your plate and help you focus on what really matters: patient care. Let Billing Buddies handle the paperwork so you can focus on healing. Also, learn more about our expert solutions for mental health billing in Minnesota today!

Why Mental Health Billing Is a Nightmare—and How to End It for Good?

By Bonnie Flom • April 18, 2025
Fact: Nearly 60% of mental health providers say that insurance billing and credentialing slow down their ability to focus on patient care. Between changing payer rules, claim rejections, and the exhausting credentialing process, providers often find themselves spending more time on admin work than therapy sessions. That’s where specialized mental health billing and credentialing services come in—and Billing Buddies is leading the charge. Table of Contents Why Mental Health Billing Is So Complex What Credentialing Means (and Why It’s a Game-Changer) Benefits of Outsourcing to Billing Buddies Mental Health Billing vs. Medical Billing: What’s Different? Our Process: How Billing Buddies Simplifies It All Summary Table: What You Get with Billing Buddies Final Thoughts + How to Get Started Why is Mental Health Billing So Complex? Unlike general medical billing, mental health services involve unique codes, session limits, and pre-authorizations. Even small errors in time-based coding or failing to include proper documentation can lead to claim denials. Key challenges include: ● Frequent insurance changes ● Limited sessions per year ● Confusing modifiers and CPT codes ● Authorization requirements ● Varied payer-specific rules What Credentialing Means (and why it’s a Game-Changer)? Credentialing is the process of verifying a provider’s qualifications with insurance companies so they can join a payer network. It involves paperwork, follow-ups, and long wait times—anywhere from 60 to 180 days. If you’re not credentialed, you can’t bill insurance. And if you’re improperly credentialed, delays and rejections will keep stacking up. Benefits of Outsourcing to Billing Buddies When you hand off your billing and credentialing tasks to Billing Buddies, you save hours weekly—and potentially thousands of dollars monthly. Perks include: ● Fewer claim denials ● Faster reimbursement ● Error-free submissions ● Up-to-date compliance ● Full credentialing support ● More time for patient care Mental Health Billing vs. Medical Billing: What’s Different?