How to switch to EFT payments
Does your dental practice still receive paper checks from insurance carriers? Insurance payments on services rendered could be hitting your practice bank account much sooner with EFT payments. You may have considered switching to EFT payments, but just haven’t had time. But you also don’t really have time to follow up on outstanding claims just to find out the check is in the mail — or worse, lost in the mail. Imagine having the insurance reimbursement in your bank account faster, with accessible EOBs for double-checking and reference. Keep reading for all of the benefits of switching to EFT payments, as well as the easy steps to switch today!
What is an EFT payment?
An EFT payment is an electronic funds transfer and is the process of electronically moving funds from one bank account (from the insurance carrier) to another (the practice account). EFT payments usually include ACH payments, wire transfers, and any other types of digital payments. ACH stands for automated clearing house.
Since EFT payments are done electronically and over the internet, no paper checks are received by the office. This means cutting the reimbursement time from insurance carriers down significantly and reducing the amount of time spent reconciling accounts. Worried about having the EOB for reference? Depending on the insurance carrier, the EOBs are either sent to the office or available on the insurance carrier’s web portal for easy download and reference. If you see an error in a payment, simply report it to the insurance carrier and work with them to resolve it.
Why should I switch to EFT payments?
One of the factors in outstanding insurance claims being resolved timely is waiting for paper checks to be received in the office. This can be a slow process. There are just too many variables:
- Postal service hours and holidays
- Insurances having the office address correct
- Making time in the day to go check the mail
Paper check payments are also harder to track and often require follow up with the insurance carrier to make sure it was sent correctly. EFT (electronic funds transfer) payments are fast, easy, and save you time.
How to switch to EFT payments
Making the switch to EFT payments is simpler than you think. You can securely opt in to EFT payments with multiple carriers at once with CAQH. Or, you can follow these steps:
- Contact the specific insurance carrier’s provider relations department
- Tell them you want to utilize the EFT payment option
- Provide the insurance carrier with the bank information for electronic payment.
Insurance carriers cannot give providers incentives to use a different payment method, delay or reject a EFT or ERA transaction, or charge excessive fees on the payments. If you ever want to opt out of an EFT payment in the future, follow these same steps but request to have a paper check mailed to the office.
It is important to mention that insurance companies have been known to inadvertently deposit funds into the wrong account. Afterall, they are humans and can make human errors just like the rest of us. But when it comes to your practice profits and money due for services provided, these errors need to be caught and corrected immediately. Learn more about reconciling your practice management software with your bank account and tracking EFT payments.