Networks vs. Direct Billing

[TheTuna]

Ok, I've been reading and trying to make a decision reguarding joining a network or just direct billing.

So far, it just doesn't make sense to me to pay someone else (ie. a network) to bill the insurance company for me.

Are insurance companies really that difficult to deal with that they refuse to pay a small, one man operation? I mean, honestly, it's still me doing the repair. Why give a cut to a middle man?

10 years ago when I got started, all my work was cash/retail and the customer paid me directly. We had a fleet account with the local BFI and did trucks on Saturdays while they were closed, that was paid on net 15 days.

If I decide to use the Free to you, bill the insurance company method, are there any real pit falls?

Plus, I'm quite confident I can make an excellent living even if I never do anything but cash jobs! Am I missing something here?

Thanks!

Tuna

[Delta Kits]

I have never been a big proponent of direct billing. It is a lot of work, and I imagine if you figure out time spent and money saved, you will find that you really aren't saving much money. Besides, at $2 an invoice, it's not that bad.

ANYWAY, if you do want to direct bill, the easiest method I see is to get paid up front by your customer, give them a copy of the invoice for them, and also give them an envelope, copy of your invoice, and even a stamp so they can just mail it in to their insurance company for reimbursement.

Obviously, this isn't as good for your customer since they have to wait a few weeks to be reimbursed, but it will be stress free for you, and no dealing with insurance companies at all!

Also, there have been a ton of posts on this forum regarding direct billing. I recommend typing "direct bill" into the search feature of this forum, and you'll have plenty of reading!

[TheTuna]

Excellent... thank you for the quick reply...

[Coitster]

I used to direct bill for almost 10 years and it wasn't fun. Personaly what I did was just do the job and then send the bill in, a few companies that wouldn't work with like State Farm. However I recommend the networks because it does make your life a lot simpler. Just my opinion though.
David
Coitster

[TheTuna]

Thanks...

I'm just resisting the inevitable and I know it.

[Chips_Away_Windshield_Repair]

We have the numbers for lynx, safelite, etc. programed into our cell phone. Wife calls, lets them talk to the customer, they talk to her, ask if we accept their pricing, get aurhorization or dispatch number.
Takes about five minutes.
They fax something to my office, we faxe that right back with signed invoice.
Checks come in the mail about every day.
I don't belong to any network.
Am I doing something wrong?

Bill Boone

[TheTuna]

thanks greybeard... I'm going to "attempt" to do direct billing...

I've decided to start out in three steps:

Step One: Cash/Retail business only while I get back into the hang of it.
Step Two: Direct Billing (test the waters with them)
Step Three: Decide later if I want to pay a network.

I think the natural tendancy of those who are network members would be to recommend joining a network, and I sense they may well be right. But I'm an instant gratification kind of guy. Pay me now for work done now!

I'd almost rather get 30 bucks today than 40 bucks in 30 days...

[Chips_Away_Windshield_Repair]

My main point is, I don't belong to nor pay a network for them giving me authroization, for doing a job. I just bill them for their standard payment and they send it to me.

Like I asked before, "what am I doing wrong"? There seems to be so much chit-chat that sounds like problems, while I don't seem to have any.

Bill Boone

[Glass Medic]

Graybeard,
I'm confused on one point you made. You don't belong to any network, but you get your auth # thru lynx or safelite. I thought you had to be in their network in order to do that? That seems to be what I've read from other people. So you don't pay them per invoice? Do you fax them the invoice or do you send it to the ins co?
If you can go thru them w/o paying per invoice, that sounds like the best way to go.
Doug

[mgburks]

Graybeard,
I'm confused on one point you made. You don't belong to any network, but you get your auth # thru lynx or safelite. I thought you had to be in their network in order to do that? That seems to be what I've read from other people. So you don't pay them per invoice? Do you fax them the invoice or do you send it to the ins co?
If you can go thru them w/o paying per invoice, that sounds like the best way to go.
Doug

If you fax to lynx it's 7.50.EDI thru Datatranz is 2.50. If your not on the network State Farm will send the check to the customer. Either collect up front or leave SASE with customer. If you have a good bit of volume you might want to join the network. Like anything it has it's good and bad points. But you can make money and save a lot of hassle by joining. We joined recently and haven't had too much trouble, mainly jumping thru a lot of hoops. But once your up and running it's not too bad. If you get the right software you can bill electronically for .89 per invoice. We are thinking datatranz glass shop deluxe.