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Front Office Procedures
Coding and Insurance
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Coding consists of . . . Diagnostic Coding Procedural Coding
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What is Diagnostic coding???
Coding is converting verbal or written descriptions into numeric designations
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784 is the diagnostic code for. . .
For example: 784 is the diagnostic code for. . .
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Headache Ouch! Headache!
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An insured patient goes to see his doctor for a headache.
This is how it works- An insured patient goes to see his doctor for a headache. Then Doctor X gives the headache a code number (784) And sends the proper paperwork to the patients’ insurance company with that code number.
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ABC Insurance company receives the paper work with the code: 784
Coding . . .yeah! ABC Insurance company receives the paper work with the code: 784 For the patient and one look at the number tells ABC Insurance company that their insured was seen for a 784 Or. . .
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OUCH A Head Ache!
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Procedure codes Mr. Bean has seen Doctor X several times over the last three years, this makes him an. . . ESTABLSIHED PATIENT
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Mr. Bean saw Doctor X for a short visit –about 15 minutes
Procedure codes Mr. Bean saw Doctor X for a short visit –about 15 minutes And he only had one problem to discuss with the doctor Mr. Bean’s visit was a problem focused, limited exam
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Procedure codes –yippee!
So Doctor X sends this information to Mr. Bean’s Insurance company as well, in the form of a number. This number is for the procedure It is called a Procedure Code 99212
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Codes, codes, codes Once ABC Insurance Company receives the paper work, called a claim, they review the code numbers and . . .
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Decide what to pay Doctor X
Codes, codes, codes Decide what to pay Doctor X
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Doctor X bills ABC Insurance Co. $175.00 for an office visit
Amount due: Doctor X bills ABC Insurance Co. $ for an office visit ABC Insurance Co. only has to pay Doctor X a portion of that amount. They decide to pay. . .
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payment $75.00
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Everyones happy
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Because The doctor gets paid.
The patient only has to pay a small amount of money to see his doctor- this is called a Co- pay.
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Everyone is happy ABC Insurance will continue to receive monthly amounts of money from Mr. Bean- this is called a premium. AND- Mr. Bean has already paid his deductible, which is an amount of money that Mr. Bean has to pay every year towards his Insurance claims.
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Recap- Mr. Bean pays a small amount out of his paycheck every month so that when he goes to see his doctor, Doctor X, he only has to pay a vary small amount called a co- payment. Doctor X’s office collects the co-payments from their patients, like Mr. Bean and the monies collected from the Insurance companies and this is how the office makes money
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Insurance coding The End.
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