Jeffrey Wade
The insurance aging report is a crucial financial report for dental practices, providing a list of unpaid or aged claims. These claims are typically considered aged if they remain unpaid after 10 business days. The report helps practices keep track of outstanding insurance claims and patient balances, allowing them to maintain their cash flow and financial health. It is recommended that practices generate this report at least once a week to stay on top of their finances and avoid losing revenue. When working through the report, it is best to start with the oldest claims first, as they have a smaller window for being paid and may require more appeals. Therefore, the insurance aging report should ideally start with 0, listing the oldest claims first, to help dental teams prioritize their efforts and maximize revenue collection.
| Characteristics | Values |
|---|---|
| Purpose | To view a breakdown of insurance and patient portion estimates by age of account |
| Report frequency | Once a week minimum |
| Report generation | Click Insurance Aging Report in the Monthly section of Standard Reports |
| Columns | Carrier, Group Name, Ins Pay 0-30 Days, Ins Pay 31-60 Days, Ins Pay 61-90 Days, Ins Pay > 90 Days, Ins Est Total, Pat Est 0-30 Days |
| Age of Account | Any Balance, Over 30 Days, Over 60 Days, Over 90 Days |
| Group By | Family, Individual |
| Filters | Carrier Name, Group Name, Billing Types, Providers, Clinics |
| Approach | Start with the oldest claims first and work your way to the newest |
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What You'll Learn
The importance of insurance aging reports
An insurance aging report is a list of unpaid or "aged" claims. In the dental industry, a claim is considered "aged" if it was submitted and not paid within 10 business days. These reports provide transparency into the financial health of a practice, showing unpaid patient balances and pending insurance claims. By reviewing these reports, practices can identify how much money they are owed, by whom, and when it is due. This is crucial for cash flow management, as it helps to ensure that claims are resolved and paid, maintaining a steady stream of revenue.
Aging reports also help to identify potential issues with accounts receivable and credit policies. They can indicate whether a credit policy is too lax or too restrictive and can help estimate bad debts. Additionally, these reports can facilitate sales training by identifying areas where sales representatives may need additional coaching, such as emphasising the importance of timely invoice resolution or identifying overselling.
To effectively manage an insurance aging report, it is recommended to work on it at least once a week. It is important to sort the report with the oldest unpaid claims listed first to avoid losing revenue due to timely filing. By regularly reviewing and addressing the claims on the report, practices can improve their billing systems, maximise revenue, and provide a better patient experience.
In conclusion, insurance aging reports are vital for any business to maintain a healthy cash flow and financial transparency. By outsourcing to a reliable billing company or partnering with an experienced dental billing service provider, businesses can effectively manage their insurance aging reports and ensure they are collecting all the revenue they are owed.
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How to generate an insurance aging report
An insurance aging report is a list of unpaid or "aged" claims. In the dental billing world, a claim is considered "aged" if it was submitted and not paid within 10 business days. An aging report also shows the number of outstanding insurance claims, how long they have been outstanding, and the total amount associated with the claims.
To generate an insurance aging report, you can use software such as Dentrix, OpenDental, or Eaglesoft. Here are the steps to generate an insurance aging report:
- Submit claims electronically through a clearinghouse. This is the fastest route of transmission for your claims.
- Once the claim is sent, it is now part of your insurance aging report. It is initially housed in the 0-30 days category. As the days pass, the claim will age accordingly.
- Insurance Aging Reports categorize aged claims into the following categories: 0-29, 30-59, 60-89, and 90+.
- Review your aging report to keep track of your customers' invoices, the total amount owed, and when they are due.
- Sort the aging report with the oldest unpaid claims listed first to avoid losing revenue to timely filing.
- Contact the insurance company by phone or their web portal. Provide your practice information, such as its Taxpayer Identification Number (TIN), and information about the claim.
- Once you've confirmed the status of a claim and know what to collect and correct for its appeal, move on to the next claim on your list for this insurance company, and repeat the process.
- Continue working your way down your aging report, repeating the steps for all the insurance companies.
- Gather the necessary information and submit your claim appeals as soon as possible.
- It is recommended to generate an insurance aging report at least once a week to ensure a steady cash flow and maintain the financial health of your practice.
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Understanding the information on an insurance aging report
An insurance aging report is a list of unpaid or "aged" claims. In the dental billing world, a claim is considered "aged" when it is submitted and not paid within 10 business days.
The insurance aging report is one of the most important financial reports for a business to understand, review, and work through weekly. This is because, for many dental businesses, insurance claims revenue accounts for 40% to 50% of overall revenue.
The insurance aging report provides a breakdown of insurance and patient portion estimates by the age of the account. It includes the carrier (insurance carrier associated with the outstanding insurance estimate), group name (group name of the insurance plan associated with the outstanding insurance estimate), and the estimated insurance balance that is past due (30, 31-60, 61-90, or >90 days).
The report can be sorted by the oldest unpaid claims first, which helps to avoid losing revenue to timely filing. It is recommended that practices generate an insurance aging report at least once a month to keep track of invoices that are due and notify customers of invoices that are past their due date.
By reviewing the aging report, businesses can identify the total amount of money owed to them and by whom, as well as the age of each invoice. This information can help businesses improve their billing systems, cash flow, and financial planning.
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Strategies for working through an insurance aging report
An insurance aging report is a list of unpaid or "aged" claims. In the dental billing world, "aged" claims are those that have been submitted but not paid within 10 business days. These reports are important as they represent money owed to a business that has not yet been collected, which can account for 40-50% of a business's overall revenue.
Prioritize Older Claims
Claims that have been lingering on the aging report for a long time should be prioritized. The older a claim gets, the less likely it will be paid, so it is important to resolve older claims first. Sort the aging report with the oldest unpaid claims listed first and work through them one by one.
Regularly Review the Report
It is recommended to generate an aging report at least once a week or, at a minimum, once a month. This allows for the timely filing of claims and helps to avoid a buildup of aged claims. Regularly reviewing the report also provides an opportunity to compare current reports to previous ones, which can help identify any issues with revenue generation and notify customers of past-due invoices.
Communicate with Insurance Companies
When working through the aging report, it is important to communicate with insurance companies to understand why claims have not been paid. Contact the insurance company by phone and provide the necessary information to confirm the status of a claim. Once you know what is needed to collect and correct each unpaid claim, gather the required information and submit any claim appeals as soon as possible.
Train Your Team
Ensure that your billing team is educated in handling aging reports and managing compliance follow-ups. An informed team can enhance collections and improve the overall efficiency of the process.
Strengthen Communication
Aging reports can facilitate better communication between billing groups, insurance companies, and patients. Clear and accurate information about claim amounts can help resolve disputes and expedite payments. It is important to reach out to patients with accounts that are past due to ensure they are receiving statements and to address any miscommunications.
By implementing these strategies, businesses can effectively work through insurance aging reports, improve their financial planning, and maximize revenue collection.
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Common mistakes made on insurance aging reports
Insurance aging reports are important for dental practices to maintain a healthy cash flow. They are a list of unpaid or "aged" claims, which are claims that have been submitted but not paid within 10 business days. These reports should be worked on at least once a week to avoid losing revenue. Here are some common mistakes to avoid when dealing with insurance aging reports:
Not Prioritizing Older Claims: It is important to prioritize older claims over newer ones. The longer a claim spends on the aging report, the less likely it is to be paid. Instead of focusing on newly filed claims, work on those that are 30 days or older. This will help you resolve claims faster and improve your cash flow.
Not Grouping Claims by Insurance Company: Grouping claims by insurance company can save you time. When you finally speak to a representative, you can address multiple claims on the same call. This will reduce the time spent on hold and streamline the process.
Not Working on Claims While on Hold: When you are on hold with an insurance company, you can use that time efficiently by working on other claims within the same insurance company's web portal or a different insurance company's web portal. This will help you resolve more claims in the same amount of time.
Not Asking the Right Questions: When you do get through to an insurance company representative, make sure you ask all the relevant questions. Find out if the claim has been paid, and if not, why not. Ask what is needed to get the claim paid and address any concerns or missing information.
Not Creating and Sending Claims Promptly: To avoid an extensive aging report, create and send claims within 24 hours of the procedure. This will give you more time to make corrections and submit an appeal if necessary. It also increases the chances of getting paid sooner.
By avoiding these common mistakes, dental practices can improve the efficiency of their insurance aging report processes and maintain a healthier cash flow.
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Frequently asked questions
An insurance aging report is a list of unpaid or "aged" claims. It represents money owed to a business that has not yet been collected.
It is recommended to work on your insurance aging report at least once a week. However, if your over-30-day total is more than 20% of your total AR, you should work on it more frequently, such as twice a week.
It is best to start with the oldest claims first and work your way to the newest. This is because older claims have a smaller and closer window for being paid.
When calling an insurance company, provide your practice information, such as its Taxpayer Identification Number (TIN), and information about the claim, such as the patient's name and the date of service.
In the dental billing world, a claim is typically considered "aged" if it has not been paid within 10 business days or 30 days. The longer a claim spends on the aging report, the less likely it is to be paid.
