Insurance Network Question

[glass_meister]

Okay - I have surfed the forum for the answer to my question.....and whala - I cannot find it. So I had to register and put the question to the group.

Hello, My name is Tom Howard. I am a manager of a glass company in TX. We do auto glass replacement as well as WSR (as well as flat glass services). I have seen the tents and road side guys with the "FREE CHIP REPAIR" signs.

I know these guys are doing this with insurance clients that are getting the deductible waived.

The networks such as LYNX and SGC require a member of a network to have a storefront and to have been in business for at least a year.

I know the abuses of the rules about the networks and their failures to police the standards. I am also a certified continous education instructor for the insurance industry, so this subject is covered in the course.

Now the question is this....when you corner tent techs get an insurance claim and you call it in to the network, do you just have your fax set up at the house or office to receive the confirmation # and do your billing at night. Or do ya'll contract with another company to do your billing. What is this ACT that I have been hearing about?

The reason I ask is because we are looking at doing something similiar with a slight twist.

I am not trying to knock the corner tent guys...just the opposite. I want to emulate them in a way. I just want to get the scoop so we don't compromise some of our other network work. We cannot afford to get "dinged" due to the storefront requirements.

ALSO on another subject, has anyone gotten in a pickle for advertising FREE CHIP repair and the customer doesn't have insurance coverage for glass or one of the dinosaur companies that haven't seen the benefit of waiving the deductible. Tell me if someone has been dragged into court due to misleading advertising over this issue.

Let me know. - Tom

[Coitster]

Hi Tom,
Ok, great questions. First of let me say that you are only required to have a store front location if you are replacing auto glass. People who repair are only required to have a physical address and not a PO Box for billing.

As for your second question, about Free Windshield Repair and if they don't have coverage, all your sign needs to say is Some Restrictions Apply in small letters or ask me how, or with insurance coverage in very small letters. In my 12 years and over 15,000 customers personaly I have never had someone complain when I told them it was with insurance.
I hope that helps. By The Way, welcome to the forum, nice to have you.
David
Coitster

[glass_meister]

I appreciate the welcome.

Can you share some info on this A.C.T.? I have also seen a post on DATATRANZ. I guess this is a clearing house of sort. But any information will be appreciated.

Tom

[Coitster]

Hello,
Datatranz is mostly a processing company that processes your paperwork from an invoice you send them to a electronic invoice that is sent to the insurance company. Mainly it helps you get your claim in faster, and lets you avoid a manual processing fee that Safelite or Lynx charge you if you just fax your invoice in. BTW Glasscomp is also another company who does this.

ACT is a company that not only processes your invoice, turning it into a EDI ivoice but also they help in the phone work with the insurance company and networks in the initial booking process. They help you with the steering that is involved with the network if you aren't a member of it.
I personaly don't recommend ACT. They charge a lot more.
Hope that helps.
David
Coitster

[desertstars]

Glass_meister.

What gives you the idea that you need to drive your invoices through either network in the first place?

The customer has the right to use whatever shop they select.

Verify the coverage and fax the invoice to the network without a work order or bill either the agent or insurance company direct through their national glass desk.

Sooner or later, you'll get paid.

We have two letters that we send with the invoices when circumventing networks.

One is a customer signed order to pay us direct and the other informing the insurance company that we refuse to use a network as a middleman.

They don't have a leg to stand on when it comes to refusal.

And.

Datatranz won't EDI an invoice without a dispatch number but they are good to use if you have network authorization. Two bucks with Lynx as opposed to $7.50.

As Coitster points out, ACT is overpriced although they do much more than just transmit an EDI invoice. They actively do a lot of the dirty work for you that you can do yourself if you are so inclined.

Check the Liquid Resin website for more info or use a google search.

Coister is correct about the "storefront" location. It has nothing to do with repairs.

Coister is also correct about "free" w/s repair. A simple disclaimer is sufficient although I can hardly see anyone being sued over a $60 argument. If some Beavus butt-head argues about it, give him a free repair and tell him to have a nice day but you don't want any referrals from his idiot friends or relatives.

Better yet, give him a car-wash or used-car lot type of repair and send him on his way.

I hope this helps somewhat.

[Dave M]

I hope you meant a professional and quality repair when you say "used-car lot type of repair". But, for some reason I don't think you did.

[glass_meister]

I appreciate your input Desertstar.

You mentioned you have two letters that directs the insurance company to pay you directly - thus circumventing the network. How has this worked...80% success, 90%, 100%?

Our shop is involved in replacement as well as repair. We do not have someone actively doing repair work as members of this board are used to doing. Our shop does 70% flat glass work, another 15% retail auto glass replacement and we really have not attacked the repair portion of the business at this time. We do it as a courtesy more than anything else.

Presently, the repairs that we do are as a result of a network claim. Sometimes we are requested to do a mobile repair and that really is not cost effective for us. However, I have looked at offering the service at a satellite location in the attempt to draw more attention to our replacement capabilities. That is what prompted the question about the storefront issue.

If anyone out here is involved in replacment, you know the networks and NAGS system are destroying the independant shops.

It is interesting you mentioned the letters. I would like to explore that in further detail. It might be nice to have some alternatives.

Thanks for the input.

Tom

[GRT]

Hey Tom, How are you handling your Insurance auto replacement glass billing now? From your credentials, you should know more about the networks than alot of us. What was the name of your company again? Just curious.

[StarQuest]

Tom,

Sorry to sound like a skeptic but all your insurance questions seemed to be directed towards the validity of all us out here trying to provide an honest and helpful repair service to the customers and insurance companies. After reading your initial post....it seemed like you had some insurance concerns with some of us setting up a tent in providing services. DesertStars and Coister gave some great input to answer most of your questions. I guess I'm just interested in what your motive is? Are you looking to add a quality repair business out of your shop and save the customer some money or are you simply trying to find some fault with our WSR system? From what I read....your a manager at a glass shop! If your only doing 15% in auto glass replacement why would you even have a concerned about repair? You already know where not going to have any effect on your 70% flat glass services. Unlesss we do glass buffing Also, like GRT stated....if your an insurance educator, you should already have all the answers!

Just my input!

You must have some motive! Please let the rest of us know what that is!!!

[glass_meister]

I understand that my initital post may have sounded a little skewed at first, but contraire my friends. I do have some valid questions. Let me give you a little bio.

I got into the flat glass industry in the early 80's (Atlanta, GA). I somehow found my self doing WSR during the infant years for a company out of Minnesota (Int'l Glass Repair). After being very successful at it, the parent company started bouncing some commission checks and I got out of the repair business. I was too stupid to realize the potential at the ripe age of 22.

Got out of the glass biz in 85 and went into nuclear. Got tired of all the travel in 2000 and re-entered the glass biz as a sales person, insurance instructor for the Glass Doctor franchise.

Now - my motivation in all this. I recently came down to Houston area to manage a shop where the owner is getting ready to retire. They have not marketed the autoglass portion of their business over the past years and I want to beef it up.

I am knowlegabe about the requirements of LYNX and SGC as it pertains to replacement.., but did not know how the satellite glass repair techs were handling the network claims.

Our shop is 50 miles from Houston, and I wish to introduce a couple of mobile repair techs .... possibly at a mall, trade shows or flea market to not only take advantage of the dollar volume, but to also draw attention to the replacement claim and retail cash auto replacment customer.

It has been 15 or so years since working with repair on a regular basis. Although I kept a kit and did repair even when I was at power stations throughout the US. I just never did repair with insurance customers. I need to know how to approach it without jeopardizing other network customers.

Sometimes I wish it was as simple as just doing repairs....good income and a lot less headaches than running a full service glass company.
I have several things running on any given day....so I have to do some homework in the evening before I jump.

I have 4 stockhoders I answer to..., and they do not take to kindly to mistakes.

That is the reasons for the questions. I do appreciate the help. I have some other questions about equipment I will post...maybe you can weigh in on those also.

Thanks - Tom Howard
Columbus Auto Glass,
Columbus, TX
979-732-6251

....feel free to call if you wish.