In the world of endodontic practice management, streamlining the revenue cycle and ensuring prompt payments from insurance companies is a vital company of your practice’s success. One powerful method to expedite and improve the collections process is utilizing Electronic Funds Transfers (EFTs), a secure and efficient method of receiving insurance payments directly into your bank account. This article explores EFTs, their advantages, how to enroll, and how Electronic Remittance Advice (ERA) reporting can boost operational efficiency.
Understanding Electronic Funds Transfers (EFTs):
An Electronic Funds Transfer, commonly referred to as EFT, is a digital financial exchange system that allows insurance companies to transfer funds directly to your practice’s bank accounts. EFTs replace the traditional method of receiving paper checks, offering numerous benefits for both parties involved. While some smaller insurance payers may not offer alternative payment options like EFTs, it’s still important to explore EFTs as an option with as many of your insurance payers as possible to ensure efficient collections
Benefits of Choosing EFTs
1. Swift Payments: EFTs excel in processing payments quickly. Unlike paper checks that may take weeks to arrive in the mail, EFTs deposit funds directly into your account, significantly reducing your reimbursement turnaround time.
2. Improved Efficiency: EFTs remove the necessity for manual check depositing, saving time and minimizing the risk of human error.
Enrolling in EFTs
To enroll in EFTs, follow these steps:
1. CAQH ProView: Many insurance providers use the Council for Affordable Quality Healthcare (CAQH) ProView portal for EFT enrollment. By creating or logging into your CAQH account, you can easily manage your EFT preferences. Make sure your CAQH profile is up to date, as this information is shared with participating insurance plans.
2. Contact Provider Relations: If your insurance provider does not use the CAQH platform for EFT enrollment, reach out to your provider relations department. They will guide you through the specific enrollment process for that insurance company.
Watch out for Virtual Credit Card “EFTs”
While most EFTs are an efficient way to receive payments, some insurance companies offer EFT payments in the form of virtual credit cards. These virtual credit card “EFTs” are less favorable for practices due to additional associated costs. Because virtual credit cards requiring entry in your merchant terminal, your practice is subject to the standard credit card merchant fees averaging about 2-3% of the insurance payment total. Merchant fees will accumulate quickly, counteracting the benefit of this type of payment. If the insurance company only offers virtual credit cards as an EFT solution, you are likely better off with the physical check alternative.
ERA Reporting: A Game-Changer
One of the most valuable tools within EFT management is Electronic Remittance Advice (ERA) reporting. This service aggregates all your EFT payment reports in one place. ERA reporting consolidates all the electronic explanation of benefits (EOBs) from different insurance companies into one user-friendly report, eliminating the need to log into multiple insurance websites separately. DentalEMR customers receive this included service automatically through our clearinghouse partner EDSEDI.
By leveraging ERA reporting, you can:
1. Simplify Reconciliation: Easily reconcile payments with your bank statements and track remittances.
2. Save Time: Minimize the time spent logging into various insurance websites to access EOBs and payment reports.
3. Reduce Errors: Transparent ERA reports ensure payments are tracked accurately and on-time, minimizing AR balances.
In Conclusion
Transitioning to Electronic Funds Transfer is a strategic move for Endodontic practice owners looking to expedite insurance payments and streamline their financial operations. With these tools in place, can focus even more energy on providing the best patient care.