BC Advantage - 2007 Issue 3
Health Insurance Contracting and the Patient
When working with non-governmental insurance companies, to establish network contracts, a provider should take into consideration the expenses of collecting from the patient. These expenses are rarely discussed or reviewed but they can have a huge impact on the practice revenue. Normally, a provider allows a considerable discount to contract with an insurance company. These discounts should be reviewed carefully before agreeing to them.Most insurance companies want a provider to take a 50-60% discount to the provider's usual and customary charges. This is how insurance companies make a profit. Many times an insurance...
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