Medical Reimbursement - Medical Coding Is The Key To Accurate Billing And Reimbursement

Employers and the self-employed are using two main strategies to keep the cost of health insurance low and to reduce their taxes.

Florida, FL (prHWY.com) January 15, 2013 - Florida, Jan 15, 2013 - Employers and the self-employed are using two main strategies to keep the cost of health insurance low and to reduce their taxes. Known as an HSA, a Health Savings Account can make most health care expenses tax deductible, and provide tax-deferred earnings. Individuals and business owners can start an HSA once they purchase a health plan that's certified to be HSA compatible. These plans are available in the individual market for much lower premiums than plans in the group coverage market.

Employers and people who are self-employed if the spouse works in the business may add a medical reimbursement arrangement to substantially increase the tax savings available with an HSA alone.

To put it simply, a medical reimbursement arrangement is an employer-funded medical reimbursement plan for employees. Someone who is self-employed cannot have an medical reimbursement arrangement in his or her name, but can reimburse the spouse, who works in the business as a W-2 employee, through an medical reimbursement arrangement. All of the family's qualified health care and insurance expenses can be reimbursed, and that includes the expenses of the self-employed business owner by virtue of medical reimbursement arrangement covered family.

Since group coverage has become an expensive option for both employers and employees, HRAs present a less expensive choice that can help both parties save on health care costs. Compared to group plan rates, policies in the individual market can save employers up to 50 percent. Certain of these plans, known as Health Savings Accounts, This makes if feasible for more employers to provide health care coverage to more employees. By setting up a HRA, employers can legitimately reimburse their employees for individual health insurance premiums and other health care costs.

On a regular basis, an employer contributes a pre-determined amount to an account on an employee's behalf. The employee can submit a reimbursement request for qualified medical expenses, and such reimbursements are not taxed.

Revenue Cycle Management is at the core of any medical practice finances. However, this aspect of medical practice management is time consuming. This means that practices that have to do their own revenue cycle management might not be able to be patient-focused. Therefore, getting external RCM services enables the practice to focus on the patient. The practice management service providers will deal with all the other aspects billing, credentialing and certification. This leads to organization in the finance books.

Basically, many providers have found it either a massive nuisance or even a money-losing venture to try to collect small deductibles and co-insurance amounts from patients. Sometimes, the cost of sending bills and trying to collect these tiny amounts of money costs a practice more than it receives, even if the patient eventually pays.

About the Author:

Medical Reimbursement - National Medical Billing Inc. Services concentrates strictly on providing billing and coding solutions and is the fastest growing company in the industry.

Contact Details:

National Medical Billing Inc.
Florida, USA

###

Tag Words: None

Categories: Business

Link To This Press Release:

URL HTML Code