Common Mistakes in Dermatology Billing and How to Avoid Them
By identifying the most common mistakes in dermatology billing, your team can avoid claims denials and the hassle of refiling claims, leading to better efficiency and financial stability.
Every dermatology office can benefit from having an accurate and efficient coding and billing system so that patient claims are dealt with quickly and billing errors don’t slip through the cracks.
Whether it’s a simple typo or an incorrect modifier, mistakes in dermatology billing usually lead to claims denials that directly affect a practice’s efficiency, earnings and financial growth. To err is human, and the world of billing is complex, so it is essential for dermatologist businesses to be aware of the most common errors and avoid making costly mistakes.
To help your billing team reduce claims denials and the hassle of refiling claims, we have compiled a list of the most common mistakes in dermatology billing and how to avoid them. This list should be a useful guide for your staff so they are aware of these common errors and keep them in mind when it comes to filling out paperwork.
Common Mistakes in Dermatology Billing
- Incorrect patient information
Even seemingly minor things or one missed field can be the difference between successful and denied claims. Always have your staff check and double-check patient information, including name, age, gender, policy number, and so forth, and ensure all fields are correctly filled in before submitting. - Incomplete Documentation
Always have detailed notes on the patient encounter, including diagnoses, treatments, and any additional services provided. Insurance companies will often reject claims that are not specifically coded enough or are inaccurately coded. Billing staff should always ensure the maximum number of digits for the code is always used. - Incorrect Coding
CPT codes are complex, so it is crucial that the patient’s diagnoses and treatment records are highly detailed and specific. For example, something like an eye lesion has different specific codes depending on whether it’s the left or right eye, the upper or lower eyelid, and so forth. Always be as specific as possible about codes to avoid rejections. - Mistakes with Insurance Verification
Before providing any services, it’s crucial to verify that a patient’s insurance plan covers the services provided. This will help prevent claims denials and the administrative burden of refiling claims. - Missing Claim Information
Ideally, you should use an electronic billing system that automatically alerts you to any missing claim fields and prevents staff from submitting incomplete claims. If filling in manually, it helps to have a second pair of eyes go over the document to look for anything that may have been overlooked. - Incorrect modifiers
Omitting modifiers or using the incorrect modifier means that insurance companies will not receive the full scope of information about what services were performed on a patient for a specific condition. Missing or incorrect modifiers will usually lead to a claim’s denial. - Missed Deadlines
Different companies have different deadlines for claims, ranging anywhere from 30 days to a year or more, so it is helpful to keep a list of your most common payers’ specific deadlines. If a deadline is missed, it is very difficult to appeal the denial. Staff should have a recurring reminder or calendar.
Dermatology practices should regularly monitor billing performance to identify common errors or issues with billing processes, such as analyzing claims data, monitoring workflows, and tracking reimbursement rates.
If you want to improve your dermatology billing systems, contact Derm Care Billing Consultants so you can optimize your billing systems and receive the highest collection rate possible.
