Insurance Interest Payment

RevolutionEHR provides three different methods of accounting for insurance interest. We recommend that you choose one method and use it consistently. It is also recommended that you consult with your accountant to determine which option is best for your practice to ensure bookkeeping accuracy.

Instructions

Option 1: Add Extra Amount in Payment Column

1. Access Accounting > Invoices > search for and open an Insurance Payer Type.
2. Click 'Receive Payment.'
3. In the Receive Payment(s) modal, select the link under the Items column for the invoice issued interest.
4. Add the interest paid amount to the insurance payment for one of the line items in the Payment column.
5. Reduce the amount entered in the write-off column by the amount of the interest payment to zero out the line item.  

• Alternatively, a separate write-off could be created for tracking interest payments. The amount in the paid column would need to be increased by the amount of the interest payment. Enter the contractual write-off amount, as indicated on the EOB/EOP, in the write-off field used by your practice to indicate contractual write-offs. Enter a second write off equal to the amount of the interest payment as a negative value.

Pros

• The interest amount is not increasing your sales report.
• This is an easy method to process.

Cons

• You are either reducing your contractual write-off by lessening it, or you are off-setting and increasing your write-offs by adding in the additional write-off reason.
• The additional write-off reason is added as a negative write-off.
• This is the hardest method to keep track of the interest payment amounts. If you do not use the additional write-off reason, the insurance interest payment cannot be tracked. 

Option 2: Add Adhoc

1. Access Accounting > Invoices > search for and open an Insurance Payer Type.
2. Click 'Pending.'
3. Click the ellipsis icon and select Add Adhoc.
4. In the Add Adhoc Item modal, enter a description and enter the amount of the interest payment in the 'Unit Price' field.
5. Click 'Save.'
6. Click 'Authorized.'
7. When receiving payment on the invoice, enter the interest payment on the  Adhoc line item.

Pros

• The amount is separated from your normal sales (products and services).
• This is the easiest way to track the interest payment amount.

Cons

• The ease of use of the Add Adhoc feature might encourage mis-use by staff.
• The interest is added to your sales report.

Option 3: Inventory Module

1. Access Inventory > Services.
2. Click the + icon.
3. Select Other Service.
4. Enter Interest Payment in the 'Name' and 'Short Description' fields.
5. Enter the interest amount paid in the Fee field.
6. Click 'Add.'
7. Access Accounting > Invoices > search for an open the invoice.
   • OR, access > Patients > search for and open the patient > Account > open the insurance invoice.
8. Click 'Pending.'
9. Click 'Add.'
10. In the Select Invoice Item modal, add the Interest Payment service to the invoice.
11. Click 'Authorized.'
12. When receiving payment on the invoice, enter the interest payment on the Interest Payment line item.

Pros

• This method is easy to track.

Cons

• This method requires a lot of steps.
• The service fee would need to be changed to match each interest payment.
• The interest is added to your sales report.