Starting an in-home medical insurance billing and processing business could lead to a lucrative source of income. Businesses providing medical billing services can offer electronic billing services to all manner of health-care professionals, from private physician's offices to large health insurance companies. However, before starting such a business it is important to understand what is needed for success and what scams you need to avoid.
Getting Started
Before you can begin in the competitive field of at-home medical insurance billing, you'll need preparation and training. Medical billing businesses submit claims of insurance for private practices, hospitals, clinics, and other insurance companies to large health insurance companies or to the US government. These claims are submitted electronically and must follow a certain procedural and diagnosis claiming process and billing procedure. In order to work in this business, you first need to have a thorough understanding of this process. You are not required to complete an official certification. However, obtaining a coding certificate would be helpful. You can find certification programs at a number of reputable higher learning and career training institutions, as well as through the American Medical Billing Association. Once training is completed, you will also need medical billing software to be able to process your orders. Software packages can be as high as $3,000 or more.
Medical Billing Business
Just as in any business, there are two important functions to this job. As a medical billing agent, you will be responsible for all data entry. According to an article on Targetwoman.com, data entry work would include entering "the patient's demographics information, practice information, physician's information, diagnosis codes, procedure codes and insurance information into the medical billing software." You will also need to track claims until they have been paid and, in some cases, will need to track down reasons claims were left unpaid. The second function, and perhaps the most important, is finding a medical professional as a business partner. The medical insurance billing business is a crowded, competitive marketplace with a few large dominant companies. Succeeding as an independent agent means making the many contacts, setting competitive or even discount prices, and working long hours selling your business to possible contacts. The business could pay off, with an average client earning you about $10,000 annually.
Watch Out for Scams
Online and newspaper ads are filled with unscrupulous people looking to take advantage of those desperate to get into the medical billing business. Online, the Federal Trade Commission warns that these ads can be misleading and often lead to lost money and no business. According to the FTC, a promoter will tell you that "many doctors who process claims electronically want to 'outsource' or contract out their billing services to save money. Promoters will promise that you can earn a substantial income working full or part time, providing services like billing, accounts receivable, electronic insurance claim processing and practice management to doctors and dentists. They also may assure you that no experience is required, that they will provide clients eager to buy your services or that their qualified salespeople will find clients for you."
The reality is that support is minimal, if existent at all, and you will have to sell aggressively to even recoup a portion of your investment. While medical insurance billing could be an excellent source of income, the business takes training, an investment in software, and a hard dose of selling to succeed.
