Healthcare Reimbursement: How it Works
Healthcare reimbursement is something worth considering when investing in a new medical device. Overlooking government reimbursements on healthcare products can often be easy. That is, due to its long, technical process involving many steps.
Some medical providers will opt to try avoiding a healthcare reimbursement completely. That’s because it is a long process that can easily go wrong. When a product is purchased in the healthcare industry, the provider can be paid after the procedures or services have been completed. A provider will receive payment on the basis of which procedure or service they performed, which is marked with its own individual CPT Code.
What is a CPT Code?
A CPT code, or Current Procedural Terminology, is a five-digit numeric or alphanumeric medical code that’s they give to individual actions in the medical industry. CPT codes are for reporting different procedures and services to accreditation organizations and health insurance companies. That is, to let them know what procedures the healthcare provider wishes for reimbursing. Insurers submit CPT codes via claim form to enable payers to organize and pay claims effectively.
The American Medical Association develops, manages, and copyrights all CPT codes. There are currently CPT codes for thousands of different procedures and tests. Additionally, these offer medical providers a uniform language for coding medical services.
Although CPT codes create a uniform language for coding medical services, reimbursing practitioners will not necessarily be equal for providing the same service. Deciding reimbursement amounts is up to the contracts between individual providers and insurers. Therefore, the reimbursement might not cover the full cost of the treatment or service. Patients and payers often share the responsibility of medical reimbursements. Many patients will pay a copayment, coinsurance, or deductible amount directly to their medical provider.
However, without coverage and code, no payment will happen at all. Healthcare Reimbursement billing codes can identify an existing payment amount for the procedure/product. Additionally, they enable device-specific data collection and can create a short-term payment/lead to higher pay over the long term.