- Inaccurate payment posting can cause financial losses, because a payment can go missing on a claim even though it was actually paid, forcing teams to repeat the entire process.
- Common posting errors include payment applied to the wrong patient, payment not applied at all, balance not transferred, incorrect adjustments, and incorrect denial codes posted.
- A single negligent keystroke can turn a $90.00 adjustment into a $9000.00 adjustment, which shows how costly imprecise posting can be.
- Accurate payment posting speeds up turnaround time and makes denial management happen faster.
- Errors can be prevented by checking that the payment entered matches the collection received, comparing contractual adjustments against the remittance advice, and confirming patient responsibility against the EOB.
Inaccurate payment posting can lead to financial losses. When payment posting is not done meticulously, a provider suffers because the payment for a specific claim goes missing in spite of having been paid. Imagine spending days chasing a claim, only to have simple errors force you to repeat the entire process.
Scenarios of incorrect payment posting
Payment applied to the wrong patient
While posting payments from the EOB, the wrong invoice number or patient ID is sometimes listed on the EOB. Inaccurate posting happens here, because the payment is adjusted for the wrong patient.
Payment not applied
Bulk checks can make posting tedious. Through human error or negligence on the part of the poster, the payment for a claim is never updated. The payment poster is responsible for updating the check details and maintaining a file with each check’s details, even when accurate and adequate information on the claim is not present.
Balance not transferred
Patient responsibility is not always mentioned in the EOB, and many front-office executives fail to check this when the patient visits the doctor. Since no copay or deductible information is captured, patient responsibility is not taken into account and the claim is treated as only partially paid.
Incorrect adjustment
When posting an insurance adjustment to the system, a $90.00 adjustment can turn into a $9000.00 adjustment through simple negligence.
Incorrect denial posted
When posting an insurance denial, the user is sometimes unable to identify the accurate denial reason and may select the wrong denial code.
If optimizing your revenue cycle management is the goal, it is time to find ways to avoid inaccurate payment posting. Accurate posting helps hasten the turnaround time, and denial management happens faster.
Steps to prevent errors
A reliable medical billing service knows how crucial accurate payment posting is and uses several methods to reduce errors. Keep these checkpoints in mind.
Check that payment entered and collection received match
Validate the amount received against the amount billed. This tells you whether the amount received is a partial or a full payment.
Compare the contractual adjustment and the remittance advice
Check for contractual adjustments by reviewing the remittance advice. This shows you why a partial payment has been made.
Keep patient responsibility and remaining balance in tune
Check for patient responsibility; the details must be in the EOB itself.
After these checks, you should be able to account for everything you billed for. If not, the claim has to be reprocessed. These checkpoints help rule out the financial loss that tends to occur because of errors in payment posting. After all, payment is what the entire medical coding and billing process is after, and any imprecision only means precious time and effort wasted.
Frequently asked questions
What is inaccurate payment posting and why does it matter?
Inaccurate payment posting is when payments are recorded incorrectly, so a payment for a claim goes missing even though it was paid. It can cause financial losses and force teams to repeat the entire claim process.
What are common payment posting errors?
Common errors include payment applied to the wrong patient, payment not applied at all, balance not transferred, incorrect adjustments, and selecting the wrong denial code when posting a denial.
How can a small adjustment error become costly?
When posting an insurance adjustment, a $90.00 adjustment can turn into a $9000.00 adjustment through negligence, which shows how a single imprecise keystroke can create a large financial discrepancy.
How does accurate payment posting help the revenue cycle?
Accurate payment posting helps hasten the turnaround time and makes denial management happen faster, which supports optimizing revenue cycle management overall.
What steps prevent payment posting errors?
Check that the payment entered matches the collection received, compare contractual adjustments against the remittance advice, and confirm patient responsibility against the EOB. If the numbers do not reconcile, the claim has to be reprocessed.