Sunday, May 29, 2016

Emergency: Dental Insurance Companies are sending virtual credit cards for payment...

I became aware of this about a year ago when my front office insurance posting and collecting staff member went on vacation.  I did her work for a week.  I noticed that several insurance companies where sending a virtual credit card.  What is that I asked myself?

It is a one time use credit card on paper that you use to pay for a claim that they sent to you.
First, if this is happening call the insurance company and opt out of that method of payment.
They have to do this because you never authorized that method of payment. You will be giving away another 2-3% in addition to your insurance write off, and also doing their work for them.  They are having your staff waste time processing the credit card transaction, when they could be just sticking a check in the deposit envelope.

The interesting part of the whole thing was my staff did not notify me about this.  Very disappointing that my staff didn't realize what the insurance companies where doing to us, or did and didn't care.

I asked how long this made been going on, and the staff said probably for months.

I would check with your staff immediately.  You could be losing time and money.