Navigating through the world of medical billing can be overwhelming and confusing. With so many complex terms and abbreviations, understanding your medical bills can seem like an impossible task. However, having a basic understanding of medical billing terms can save you time, money, and ensure that you’re receiving the right care. In this blog post, we’ll break down some of the most common medical billing terms and what they mean.
Co-Pay
A co-pay is a fixed amount that insured patients are required to pay for a specific medical service. This amount is predetermined by insurance companies and can vary depending on the type of service. For example, there may be a $30 co-pay for a regular doctor’s visit and a $60 co-pay for a specialist visit. It’s important to note that co-pays do not count towards deductibles.
Deductible
Deductible is the amount of money an insured patient must pay before their insurance coverage kicks in. For example, if someone has a $1,500 deductible, tthey will be responsible for paying the first $1,500 of their medical bills before their insurance plan starts to cover the costs.
Explanation of Benefits (EOB)
An EOB is a detailed statement from an insurance company that explains the costs of a medical service and how much of the cost is being covered by the insurance plan. It’s important to encourage patients to review their EOB carefully and compare it to their medical bills to ensure accuracy.
CPT Code
CPT codes, or Current Procedural Terminology codes, are used to describe medical procedures and services provided by healthcare providers. These codes are used by insurance companies to determine the amount of reimbursement a healthcare provider will receive for a specific procedure.
Wrapping It Up
Understanding medical billing terms can be challenging, but it’s an essential part of running your practice.
By taking the time to familiarize yourself with the terms outlined above, you will gain a more accurate understanding of the medical billing process. If you still have questions or need assistance, don’t hesitate to contact our team today.
Practice IQ: Medical Billing Services in California
At Practice IQ, we understand the challenges healthcare professionals face in today’s fast-paced world. That’s why we have made it our mission to take care of the administrative side of medical-legal reports and billing so you can focus on what you do best.
We are located in Pomona, California, and serve clients all over the Golden State. Get in touch today by telephone (424-433-5704) or email (piqusinfo@practiceiqusa.com), or fill out the contact form to learn more about our services.
