5 Basic Keywords Used On Pricing Sheets By Medical Billing Companies
Medical billing software can be confusing, especially with complex pricing sheets. These sheets often use industry-specific terms, making it hard to decide which software to choose. This blog will help you understand five common keywords on these pricing sheets and what they mean.
Let’s decode these Medical Billing keywords and their implication here.
Account Setup Cost /Setup Per Tax Id cost
The account setup fee is the fee for establishing/creating your billing company’s account on the software vendor’s system. The setup cost per tax id is the cost charged by the billing software company when you set up your medical practice client onto the software.
What does this mean?
This is the fee for creating your billing company's account on the software vendor's system. The setup cost per tax ID is charged when you add a medical practice client to the software.
Typical Cost:
This fee ranges from $99 to $199. There may be a smaller charge ($0 to $99) for each additional client or practice (tax ID) you add.
Alternate Option:
Many vendors now waive this fee to attract new clients. Always ask if they can waive it.
Cost per User
This is the pricing model in which the billing software company will charge you for every user that you create on their system.
What does this mean?
This pricing model charges you for each user you create on their system. You need to track the number of users to control costs. If you're the only biller, you'll be fine with one user. As you hire more people, the cost goes up.
Typical Cost:
This fee ranges from $49 to $149 per user.
Alternate Options:
Some vendors offer unlimited users. This option allows you to create as many users as needed, helping you manage work better and predict costs.
Cost Per NPI/Cost Per Provider
This cost represents the pricing model in which the billing software company will charge you a fixed monthly cost for each Provider/NPI. This also represents a “Package” price.
What does this mean?
This is a fixed monthly cost for each Provider/NPI. It usually includes the software license and some EDI costs (like electronic claims and ERAs).
Typical Cost:
This fee ranges from $199 to $349 per provider. The price is based on the expected number of claims a provider will handle each month.
Alternate Options:
A volume-based price, where you pay per transaction, could be cheaper if you handle fewer claims.
Cost per Transaction
This cost represents the pricing model in which the billing software company will charge you a fee for every EDI Transaction that you initiate. This also represents a “Package” price. The typical transactions are Eclaims, ERAs, Claim Status, Eligibility Check.
What does this mean?
This model charges a fee for every EDI transaction, such as Eclaims, ERAs, claim status, and eligibility checks. It's good if you're unsure about your claim volume.
Cost:
Alternate Options:
A package price (discussed under "Cost per NPI/Provider") might be better if your claim volume increases.
Cost Per Additional Provider
Most of the vendors normally add this charge to increase their bottom-line. This charge means that there will be a monthly charge for every provider beyond the first one whose claims will be processed through the account.
What does this mean?
This is a monthly charge for each provider beyond the first one whose claims will be processed. This fee is usually added in a transaction/volume-based model.
Typical Cost:
This fee ranges from $29 to $99 per additional provider.
Alternate Options:
Negotiate this fee, especially if you have providers with low monthly claims.
When going through the pricing sheets for medical billing software, one should always look for the Software, that has a predictive and transparent pricing model. It should not have hidden costs or conditions just to charge the biller extra money. It should be able to provide value as that of a core Medical Billing Software; reduce manual work and redundant steps, enhance productivity, and provide excellent reports. At the end of the day, it should be leaving you stress free with higher profits and a justified pricing plan.
AltuMED PracticeFit comes with a simple and transparent pricing plan. Our experts are available 24/7 to guide in case any confusion occurs. Kindly Contact us
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