AR Follow-Up in Medical Billing
AR follow up medical billing collects payment on outstanding claims. Your practice submits claims to insurance companies. However, not all claims get paid automatically. Therefore, follow-up work is essential for revenue collection. Your accounts receivable represents money owed to your practice. Some claims are paid quickly within 30 days. Meanwhile, other claims require persistent follow-up. Thus, systematic follow-up processes convert AR into actual cash. This guide explains the complete ar follow up process in medical billing. First, you will learn what AR follow-up includes. Next, you will discover prioritization strategies. Finally, you will understand how follow-up improves cash flow. Most practices struggle with growing accounts receivable balances. However, proper follow-up procedures reduce AR significantly. In fact, effective follow-up can decrease AR by 30 to 40 percent. Therefore, your practice needs strong follow-up workflows. What Is AR Follow-Up AR follow-up tracks unpaid insurance claims after submission. Your team contacts insurance companies about outstanding balances. Additionally, they investigate why claims remain unpaid. Therefore, follow-up turns submitted claims into collected revenue. The accounts receivable follow up process begins after expected payment timeframes pass. For example, most clean claims pay within 30 days. However, claims unpaid after 30 days need investigation. Thus, follow-up identifies and resolves payment delays. When Follow-Up Begins Follow-up timing depends on payer and claim type. For instance, electronic claims typically pay within 14 to 21 days. Meanwhile, paper claims take 30 to 45 days. Therefore, your follow-up schedule should reflect these timeframes. Most practices start follow-up after 30 days for electronic claims. Additionally, they begin at 45 days for paper claims. However, high-value claims may warrant earlier follow-up. Thus, claim amount affects follow-up timing. Standard Follow-Up Timeframes Your practice should establish standard follow-up schedules. First, check claims at 30 days if unpaid. Next, follow up again at 45 days. Then, escalate at 60 days if still unpaid. Finally, pursue aggressively at 90-plus days. Therefore, consistent timing ensures no claims are forgotten. Some payers have slower payment cycles. For example, government payers may take longer. Additionally, workers compensation claims have extended timeframes. Therefore, payer-specific schedules improve efficiency. Your staff should document every follow-up attempt. This documentation shows persistence. Additionally, it provides evidence for appeals. Therefore, detailed records support collection efforts. Components of Effective Follow-Up Effective ar follow up medical billing includes multiple activities. First, staff identify unpaid claims systematically. Next, they contact payers through appropriate channels. Then, they document all communications. Finally, they take necessary next actions. Therefore, comprehensive follow-up maximizes collections. Your team uses various contact methods during follow-up. For instance, they call payer claims departments. Additionally, they submit electronic status inquiries. Moreover, they send written correspondence when needed. Thus, multiple channels increase response rates. Documentation Requirements Every follow-up contact must be documented thoroughly. For example, record the date and time of contact. Additionally, note the representative’s name. Moreover, document what information was provided. Finally, record any promises or next steps. Therefore, complete documentation tracks progress. Your practice management system should store all follow-up notes. This centralized documentation helps all staff members. Additionally, it prevents duplicate follow-up efforts. Therefore, system documentation improves efficiency. Follow-up notes should include specific details. For instance, record claim status according to the payer. Additionally, note payment dates if provided. Moreover, document any additional information requests. Thus, detailed notes guide next actions. Learn more about the complete revenue cycle management guide to understand how follow-up fits your workflow. AR Aging and Prioritization AR aging categorizes outstanding balances by age. Your aging report shows how long claims have been unpaid. Additionally, it helps prioritize collection efforts. Therefore, aging analysis is essential for follow-up. Your accounts receivable ages in specific categories. Typically, reports show 0-30 days, 31-60 days, 61-90 days, and 90-plus days. Additionally, each category requires different follow-up approaches. Therefore, understanding aging guides your strategy. Understanding AR Aging Reports AR aging reports organize unpaid claims by age brackets. For example, the 0-30 day category includes recently submitted claims. Meanwhile, the 90-plus day category shows long-outstanding balances. Therefore, aging reveals collection problems quickly. Your practice should review aging reports weekly at minimum. This frequency catches problems early. Additionally, regular review prevents claims from aging excessively. Therefore, consistent monitoring improves results. Healthy AR Aging Benchmarks Industry benchmarks suggest specific aging distributions. For instance, 0-30 days should contain 50 to 60 percent of AR. Additionally, 31-60 days should hold 20 to 25 percent. Moreover, 61-90 days should represent 10 to 15 percent. Finally, 90-plus days should stay under 10 percent. Therefore, these benchmarks guide performance goals. Your practice should track aging trends over time. For example, compare current month to previous months. Additionally, identify which categories are growing. Therefore, trend analysis reveals emerging problems. Some specialties have different benchmark ranges. For instance, surgical practices may have higher percentages in later categories. However, all practices should minimize 90-plus day balances. Therefore, specialty-specific benchmarks provide better comparisons. Prioritizing Follow-Up Work Not all outstanding claims deserve equal attention. For instance, high-dollar claims need immediate follow-up. Meanwhile, small-balance claims may wait. Therefore, strategic prioritization maximizes collection value. Your staff should consider multiple factors when prioritizing. First, evaluate claim age. Next, assess claim amount. Then, consider payer payment patterns. Finally, review previous follow-up attempts. Therefore, systematic prioritization focuses effort effectively. High-Priority Claim Characteristics Certain claims should receive immediate attention. For example, claims over $1,000 are high priority. Additionally, claims in 90-plus days need urgent work. Moreover, claims with upcoming filing deadlines require fast action. Therefore, these characteristics trigger immediate follow-up. Your team should create daily work queues. These queues list high-priority claims first. Additionally, they organize work by payer or claim type. Therefore, structured queues improve productivity. Some payers have specific follow-up windows. For instance, corrected claims must be submitted within certain timeframes. Additionally, appeal deadlines are strict. Therefore, deadline awareness prevents lost revenue. Low-Priority Claims Management Small-balance claims receive lower priority. For example, claims under $50 may not justify extensive effort. However, they still need follow-up eventually. Therefore, batch processing works well for small claims. Your staff can group small claims by payer.