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Collecting From Insurance Companies

Hello everyone,

We have a collections issue. Our problem payor is Farm Bureau Automobile Insurance in the State of Michigan. On 11-04-04 we began 24 hour care for a MVA victum. I recieved a letter of intent from the adjuster at Farm Bureau. Farm Bureau paid for November, December. and part of January services. They then decided not to pay. We discontinued services for many reasons on May 11th 2005. This is the third Farm Bureau case we have had collection issues on.

We have had an attorney working on it since Sept. 2005. Any suggtions or similiar experiences

Marcia,
HHH Nursing Manager

Thanks, Marcia … for sharing this example with the rest of us.

There are several things you can do to prevent this type of situation in the future:

1. Have a paragraph in your service agreement with the client stating that they are responsible for payment. You will work with their insurance company, but if the insurance company delays payment or refuses payment, that the client is liable.

2. Make in clear in your agreement that failure to pay is cause to discontinue services. This will avoid any charges of abandonment.

3. Bill frequently, follow up quickly on slow payers, and keep the client informed that the insurance company has not paid. Remind them that it’s their responsibility to pay the bill, and that service will be discontinued if payment is not received.

We have found that it’s better to anticipate these types of claims and take action to prevent them. After a large bill has been accumulated, it’s always much more difficult and expensive to collect.

Hope this helps. I’ll look forward to hearing from others who have had similar problems. Add your comments below about collection problems and how you have addressed them.

Thanks,

Stephen

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