Which practice helps reduce the risk of a growing accounts receivable balance?

• A. Waiting for patient payment before billing
• B. Submitting claims only quarterly
• C. Verifying benefits, obtaining authorizations, and timely filing claims.
• D. Reducing authorization procedures

Answer: (C)

Proactive claim management that verifies benefits, secures necessary authorizations, and files claims on time is the best way to keep accounts receivable from growing. Verifying benefits confirms what the patient’s insurance covers, how much is billed, and any requirements up front, so the claim is accurate from the start. Obtaining required authorizations ensures the service is approved by the payer before it’s performed, reducing the likelihood of denials after submission. Timely filing ensures the claim reaches the payer within their submission window, preventing aging and delays in payment.

Waiting to bill until after the patient pays delays revenue and tends to inflate AR. Submitting claims only quarterly introduces long gaps between service and reimbursement, increasing aging. Reducing authorization steps raises the risk of denials and nonpayment, which also drives AR up.