Payment Posting in Medical Billing
Payment posting medical billing records all money your practice receives. This step tracks insurance payments and patient payments. Therefore, accurate posting keeps your financial records correct. Your practice receives payments from multiple sources daily. Insurance companies send electronic payments. Patients pay copayments at the front desk. Additionally, patients mail checks for their balances. Thus, tracking all payments is essential. This guide explains the payment posting process in medical billing. First, you will learn what payment posting includes. Next, you will discover common posting errors. Finally, you will understand how posting affects your revenue cycle. Most practices struggle with payment posting accuracy. However, proper posting processes improve financial reporting. In fact, posting errors create false account balances. Therefore, your practice needs strong posting workflows. What Is Payment Posting Payment posting records money received in your practice management system. This process matches payments to the correct patient accounts. Additionally, posting links payments to specific claims and services. Your financial reports depend on accurate payment posting. For example, accounts receivable reports show unpaid balances. However, missing posts make balances look higher than reality. Thus, posting accuracy is critical for financial management. Types of Payments Posted Your practice receives several different payment types. First, insurance companies send claim payments. Next, patients pay their share at check-in. Then, patients send payments for billed balances. Finally, secondary insurance pays after primary insurance. Each payment type requires different posting procedures. For instance, insurance payments include remittance details. Meanwhile, patient payments are simpler transactions. However, all payments must be posted accurately. Therefore, staff need training on each payment type. Insurance Payment Posting Insurance payments arrive with explanation of benefits documents. These documents show what the insurance paid. Additionally, they explain any adjustments or denials. Moreover, they list patient responsibility amounts. ERA payment posting handles electronic remittance advice files. These files contain payment details in electronic format. Therefore, your system can post payments automatically. Additionally, automation reduces manual work significantly. Paper remittance advice requires manual posting. Staff must read each line item carefully. Then, they enter payment amounts into your system. Next, they record adjustments and denials. Finally, they update patient balances. Patient Payment Posting Patient payments include copayments collected at service. Additionally, they include payments on billed balances. Moreover, some patients make payment plan installments. Thus, patient payments happen throughout the revenue cycle. Point-of-service collections happen during check-in. Your front desk collects copayments and deductibles. Then, they post payments immediately in your system. Therefore, patient accounts update in real time. Mailed payments require posting when received. First, staff open and log all checks. Next, they match payments to patient accounts. Then, they post amounts to correct balances. Finally, they prepare bank deposits. Payment Posting Workflow The payment posting process in medical billing follows specific steps. First, staff receive payment information. Next, they verify payment details. Then, they enter information in your system. Finally, they reconcile posted amounts. Daily posting keeps accounts current. Therefore, your staff should post payments each day. Additionally, daily posting makes reconciliation easier. Moreover, patients see current balances when they call. Thus, consistent posting improves customer service. Payment Verification Steps Staff must verify all payment information before posting. First, they confirm the payer name is correct. Next, they check payment amounts match remittance details. Then, they verify claim numbers are accurate. Finally, they review adjustment reasons. Verification catches errors before they enter your system. For example, transposed numbers are caught early. Similarly, payments matched to wrong accounts are prevented. Therefore, verification saves time fixing errors later. Your staff should use a verification checklist. This tool ensures consistent verification across all staff. Additionally, checklists prevent missed verification steps. Therefore, payment accuracy improves with standardized processes. Learn more about the complete revenue cycle management guide to understand how posting fits your workflow. Manual vs Automated Payment Posting Payment posting methods vary between manual and automated processes. Manual posting requires staff to enter each transaction. Meanwhile, automated posting uses technology to process payments. Therefore, each method has different benefits and challenges. Your practice likely uses both methods currently. For instance, ERA payments post automatically. However, paper checks require manual posting. Thus, understanding both methods helps optimize your processes. Manual Payment Posting Process Manual posting gives staff complete control over transactions. Staff review each payment line by line. Then, they enter information carefully. Additionally, they make posting decisions for complex situations. Manual posting takes significant time. For example, posting one insurance payment takes 10 to 15 minutes. Additionally, high payment volumes create staff bottlenecks. Therefore, manual posting limits how many payments staff can process. Advantages of Manual Posting Manual posting handles complex payment situations well. For instance, staff can research unusual adjustments immediately. Similarly, they can contact payers about confusing payments. Moreover, they apply critical thinking to posting decisions. Staff catch errors during manual review. For example, obviously incorrect payments are flagged. Additionally, unusual adjustment amounts trigger investigation. Therefore, manual review provides quality control. Training is simpler for manual posting. New staff learn basic posting principles first. Then, they practice with supervision. Additionally, they build expertise over time. Thus, manual posting supports gradual skill development. Disadvantages of Manual Posting Manual posting is slow and labor intensive. Staff can only post limited payments daily. Therefore, high volumes create backlogs. Additionally, backlogs delay account updates. Thus, your financial reports show outdated information. Human errors happen more frequently with manual entry. For instance, staff transpose numbers accidentally. Similarly, they post to wrong accounts sometimes. Moreover, fatigue increases error rates. Therefore, manual posting carries higher error risk. Staff costs are higher with manual posting. Your practice needs more billing staff for same volume. Additionally, experienced posters command higher salaries. Therefore, manual posting increases labor expenses. Automated Payment Posting Automated payment posting uses technology to process payments. Your system reads electronic payment files automatically. Then, software matches payments to correct claims. Additionally, the system posts amounts without manual entry. ERA payment posting is the most common automation. Insurance companies send payment details electronically. Your practice management system receives these files. Then, the system