What Are Dental Insurance EFTs?

In the era of upgradation with day-to-day changing technologies, businesses are more benefited in terms of payment transaction security and efficiency. Similarly, the financial side of your dental practice has many benefits, such as availing those digital platforms for many reasons, primarily to save your practice from financial losses and extended time spent on managing transactions manually. Dental insurance EFTs, with their many types and features, are fast, secure, and efficient systems of exchanging payment, particularly for your practice to receive dental insurance payments from insurance companies quickly and without the potential obstacles. For instance, there is an extended amount of effort and time spent on managing money exchange, extra costs on paper checks, the need for human interaction, and the risk of human error due to in-person transactions. Moreover, your patients have the security and convenience of their payment processing and to track their insurance payments confidently. Hence, understanding the EFTs and their crucial functions is essential for both your patients and practice so that they do not lag behind in the digital realm and make much out of their dental practice through these shifting methods of payment transfer. Stay with us in this crucial guide that extends the comprehensive information on EFTs, with their many types and advantages for your practice.

Understanding Electronic Fund Transfers In The Context Of Dental Insurance

EFTs in dental insurance are the shift from traditional and paper-based payment transfers to the digital payment transaction system. For your practice and patient's insurance payment security and risk-free transactions, these systems offer many benefits. Let's learn the perks of dental insurance EFTs and their advanced functions for involved parties.

What are Electronic Fund Transfers In Dental Insurance?

Electronic funds transfer (EFTs) is a digital system of payment transactions from one bank account to another without the need and involvement of human employees or paper checking. In dentistry, the system allows payment transfer from the patient's insurance company to the patient's dental care provider account or dental practice management system (PMS) without the physical check or manual processing, providing a convenient and hassle-free experience for patients. EFTs are quicker and more secure methods of funds transfer using electronic systems.
To streamline the dental insurance payment process, insurance companies process claims and electronically transfer the agreed-upon payment directly to the provider's bank account when the dental service is provided. On the other hand, billing staff at a dental practice get the advantage as EFTs save additional time when receiving payments from insurance companies. Because the technology offers quick payment as soon as the claim is processed, they don't need to put effort into administrative tasks related to managing and depositing physical checks. Furthermore, EFTs offer payment security, leaving no room for the risk of losing checks.
EFTs are the simplified version of payment transactions between patients, dental practices, and insurance companies, benefiting all parties involved as the modern and efficient way of financial interaction.

Some Of The Quick Benefits Of Electronic Fund Transfers In Dental Insurance

Improved efficiency for dental providers

• Faster payment processing times
• Immediate transfer of funds upon claim approval
• Streamlined revenue cycle for steady cash flow
• Reduced manual effort with automation, freeing up staff time

Convenience for patients

• Direct deposit into dental practice's account
• Eliminates the need for patients to handle physical checks
• Easy payments are checked and tracked digitally
• Provides transparency and control over financial interactions

Reduced paperwork and administrative tasks

• Elimination of physical checks reduces paperwork
• More environmentally friendly approach
• Significant reduction in paper waste
• Dental staff can focus more on patient care and less on paperwork
• Patients no longer need to handle or keep track of physical checks and related documents

A Step-by-step Process Of Dental Insurance EFTs

• The process of dental insurance EFTs begins with patients providing consent for electronic fund transfer payments.
• The patient signs an authorization form provided by the dental practice.
• The patient provides their banking information, including the bank account number and routing, to the dental office to set up the EFT.
• Once the patient receives dental care, the dental office submits a claim to the insurance company for reimbursement.
• The insurance company then reviews the claim to measure the covered amount according to the patient's plan.
• When the claim gets approved by the insurance company, the payer calculates the amount to pay for dental service.
• The next step after the amount has been determined is that the insurance company initiates the EFT transaction to the dental practice's bank account/ provider.
• The amount is transferred electronically through the Automated Clearing House (ACH) network.
• The dental practice receives payment directly into their designated bank account and receives notification or remittance advice.
• The remittance advice explains the details of payment, such as the patient's name, the service provided, and the amount paid.

How To Set Up An Account To EFTs?

Setting up an account to accept EFT payments is a simple process similar to creating a bank account to receive payments. However, you have already set up EFT reconciliation if you are currently receiving ACH (automated clearing house) transfers. Below are explained some of the requirements to accept and send EFT payments that you must understand:

• The first step in the process is that you will need the receipt's bank account information including their account number, routing number, and name of their bank.
• Secondly, you will need to authorize the transfer of payment from your bank account through the mobile app or online.
• You will need to have an adequate amount in your bank account to cover the transfer amount.
• You must need to check your bank's transaction limit, to ensure the amount you transfer does not exceed the limit.
• EFTs also incur fees, so should check your bank on how much charges you will have to pay on different transactions.
• In order to ensure the security of your payment, it is essential for you to provide authentication information such as password, PIN, or any security question.

Why Is It Important To Balance Payments Through EFTs In Billing?

Despite the fact that your money is going straight into your dental PMS, and insurance companies offer all of the payment reimbursement, it is yet essential to account for each single payment entered into the PMS for the bank. Ensuring balancing is important in each system to avoid the risk of applying for wrong payments into your parent's account.
If the option isn't available, try looking for the offices that set up a separate payment type for these payments. Each office will need to decide how to set up their own system. Furthermore, it's important to have these numbers separate when balancing deposits for each day. Also, it's important to know the source of funds and that all of your dental insurance EFTs received represent the correct amount.
Another query that dental practices face in the process is that they lack knowledge of whether payment has been deposited into their bank account. Since insurance companies proceed differently in notifying you of the deposits, the better option is to ask insurance companies about their approach to notifying you of each deposit when you are setting up for EFTs.

Some Other Significant Terms Within Electronic Fund Transfers (EFTs)

ERA

Electronic Remittance Advance (ERA) reporting is one of the most valuable tools in the process of EFTs. These reports help you accumulate all your payment records in one place. Moreover, accumulating all electronic EOBs (Explanation of Benefits) from different insurance companies in a single user-friendly report gives you the advantage of eliminating the need to log into multiple insurance websites.

EOBs

Explanation of benefits (EOBs) is a statement of your patient's dental insurance plan including information on patient's dental plan, the provider that provided care and the time when the dental service was offered, a reference number called "claim number", and the person who gets the reimbursement for overpayments.

• Moreover, EOBs offer information on claim details, including the date and type of service.
• It provides information on bills such as the cost of patient care, provider charges, and the amount the dental plan will pay.
• Information on patient balance, the amount that the patient owes after the dental plan has paid charges.

Virtual Credit card (VCC)

Virtual credit cards or Vcards are another efficient payment transfer tool that many insurance companies offer. However, dental practices may not get these options as favorably due to their associated costs. The reason is these cards require entry in your merchant terminal, so your practice gets standard credit card merchant fees averaging about 2 to 3% of the total insurance payment. In case your practice gets a Vcard as an EFT solution, you must acquire a physical check as an alternative.

Experience The Difference With Our Dental Billing Services Today!

Join knots with MedsDental Billing if your practice faces the hurdles of dental insurance billing and payment. We offer comprehensive dental billing solutions to optimize efficiency and enhance revenue for your practice. With our extensive expertise in handling dental insurance Electronic Funds Transfers (EFTs) and communication with insurance companies, we guarantee seamless transactions and timely payments so your dental practice can focus on providing the quality care that the patients need.