Does anybody here direct bill the insurance companies without going through Lynx or Safelite?
If so, is it a royal PIA or are the transactions fairly easy. I know that the edirect lite is a viable option, but if possible, I would like to try to bypass outsourcing my billing.
On another note, how many of you are using edirect lite and how is it working out for you? Do you find it easy to use the "Free Repair" angle when trying to attract retail customers?
Thanks,
-Jeff B.
Direct Bill Insurance Co.
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Re: Direct Bill Insurance Co.
We direct bill, and we have always been paid in full in the end. We have had a couple of short pays in which we re-submitted and we did get the balance. I must warn you though that it is extra work and a pain in the a**. You will have to decide if the money is worth the effort needed to stay on top of them. Cash customers are your best friend by far!! Right now we are seriously considering joining the networks but not just according to there terms. We have some terms we need to have met to make it a win win situation. If they send us a customer we ill bill at a fair rate according to there rules as it was not a customer generated by my advertising or prospecting. If it is a customer that my money or efforts generated then I will bill accordingly. I personally feel we, will not recieve enough business to release total billing and pricing control to them. I am working right now to try to create a win win situation. If it happens great. If not, I will continue to bill at my rates. I have made many posts on this topic in the past(old forum) if you can find them. Hope this helps.
Pay it forward,
Brian
http://www.safeglasstechnologies.com
Pay it forward,
Brian
http://www.safeglasstechnologies.com
Safe Glass Technologies
2012 WRO Gold
2009 WRO Gold
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2012 WRO Gold
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2008 WRO Silver
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Re: Direct Bill Insurance Co.
Article Source: IGA Beacon Quarterly
"How to Direct Bill"
By Donovan Trana
Owner of Express! Auto Glass
IGA Board President
In the recent past, direct billing was the norm, but as insurance companies focused on lowering their costs and turned to networks, direct billing wasn't used as much. Now, thousands of glass shops are rediscovering direct billing as a way to gain control back of their businesses.
Direct billing is literally the name for what we used to do, which is to send the bill to the insurance company claims department and receive payment from them, not a third party. An insurance company has never turned down my direct billing programs because I started out small and built a track record of success with smaller companies. This helps convince the larger companies that you're a legitimate partner.
With the advent of software shops can not offer insurance companies direct billing, and the IGA's Billing Service Committee is dedicated on bringing a more efficient, lower cost Internet-based system to the market within the next six months.
The bulk of the insurance companies are small, and a lot of them don't have third party billing arrangements. What they're really looking for is a fair price and reasonable transaction costs. These are the companies you should approach first with a direct billing program.
Tim Smale, IGA's Chief Executive Officer, following my example has been helping many glass shops set these type of programs up. "There are no hard and fast rules for direct billing, but the general guidelines shown below can assist you in setting up programs," he explains. "By having an assignment of rights drawn up by an attorney, you can go after the short pays if they don't send you amount you billed them. Work methodically without bringing in emotions that get in the way of a good business relationship, and being prepared to go the long haul will go a long way toward being successful taking this approach."
The next step is to put together information to give insurance companies that introduces your company and why you prefer to direct bill. I provide the insurance companies with a whole list of documents, from our written warranty procedures, to our adhesive selection guides, to a list of laws that apply to our industry. I also include a statement that explains why I don't want to deal with their party networks.
Next, consider who you want to approach first and whether direct billing is an appropriate choice for that insurance company.. Contact the claims manager and explain that your company would like to set up a direct billing program. Be persistent and remember that direct billing goes back to the way we did business a few years ago. It's merely a way for a business to apply common sense business practices.
Whether or not you are successful from the start, it may be an effective way to reduce your reliance on the networks, especially until we have a better system set up with insurance companies direct. It's like Dorthy in the "Wizard of Oz", we've never lost our right to run our businesses, we've been led to believe that we had to be part of the networks. The future is in our hands.
Setting up a Direct Billing Program
This information was submitted by an IGA member to assist you in developing a Direct Billing Program if your current program does not meet your needs. Our intent is to share information that may be helpful to you and is not a request for IGA members to stop doing business with networks..
What is "Direct Billing"?
"Billing direct" is the simple process of sending your invoice directly to the insurance claims department, thereby eliminating the dependency on billing programs that do not meet your company's needs.
Why should I go to the trouble of setting up a direct billing program for each of the insurance companies I do business with?
First, you need only establish programs with those insurance companies whose claims programs are not satisfactory to you. Secondly, direct billing puts you in control of your pricing and billing procedures, and it also puts the responsibility on the insurer to pay the claim in full (when following proper procedure).
Who establishes the pricing levels?
You do! You know what the market is in your area. Simply establish a price for your product and service that allows you to be profitable and offer a safe, quality installation. Be sure to back up your prices with market survey's and good record keeping of typical sales prices in your market, along with justification based on your cost of doing business.
How do I accomplish this?
It's surprising how simple it is to set up, if you follow the steps and guidelines listed below. Most insurance claims departments are just like you, they want to be treated fairly. Approach them that way and you will be successful!
"How to Direct Bill"
By Donovan Trana
Owner of Express! Auto Glass
IGA Board President
In the recent past, direct billing was the norm, but as insurance companies focused on lowering their costs and turned to networks, direct billing wasn't used as much. Now, thousands of glass shops are rediscovering direct billing as a way to gain control back of their businesses.
Direct billing is literally the name for what we used to do, which is to send the bill to the insurance company claims department and receive payment from them, not a third party. An insurance company has never turned down my direct billing programs because I started out small and built a track record of success with smaller companies. This helps convince the larger companies that you're a legitimate partner.
With the advent of software shops can not offer insurance companies direct billing, and the IGA's Billing Service Committee is dedicated on bringing a more efficient, lower cost Internet-based system to the market within the next six months.
The bulk of the insurance companies are small, and a lot of them don't have third party billing arrangements. What they're really looking for is a fair price and reasonable transaction costs. These are the companies you should approach first with a direct billing program.
Tim Smale, IGA's Chief Executive Officer, following my example has been helping many glass shops set these type of programs up. "There are no hard and fast rules for direct billing, but the general guidelines shown below can assist you in setting up programs," he explains. "By having an assignment of rights drawn up by an attorney, you can go after the short pays if they don't send you amount you billed them. Work methodically without bringing in emotions that get in the way of a good business relationship, and being prepared to go the long haul will go a long way toward being successful taking this approach."
The next step is to put together information to give insurance companies that introduces your company and why you prefer to direct bill. I provide the insurance companies with a whole list of documents, from our written warranty procedures, to our adhesive selection guides, to a list of laws that apply to our industry. I also include a statement that explains why I don't want to deal with their party networks.
Next, consider who you want to approach first and whether direct billing is an appropriate choice for that insurance company.. Contact the claims manager and explain that your company would like to set up a direct billing program. Be persistent and remember that direct billing goes back to the way we did business a few years ago. It's merely a way for a business to apply common sense business practices.
Whether or not you are successful from the start, it may be an effective way to reduce your reliance on the networks, especially until we have a better system set up with insurance companies direct. It's like Dorthy in the "Wizard of Oz", we've never lost our right to run our businesses, we've been led to believe that we had to be part of the networks. The future is in our hands.
Setting up a Direct Billing Program
This information was submitted by an IGA member to assist you in developing a Direct Billing Program if your current program does not meet your needs. Our intent is to share information that may be helpful to you and is not a request for IGA members to stop doing business with networks..
What is "Direct Billing"?
"Billing direct" is the simple process of sending your invoice directly to the insurance claims department, thereby eliminating the dependency on billing programs that do not meet your company's needs.
Why should I go to the trouble of setting up a direct billing program for each of the insurance companies I do business with?
First, you need only establish programs with those insurance companies whose claims programs are not satisfactory to you. Secondly, direct billing puts you in control of your pricing and billing procedures, and it also puts the responsibility on the insurer to pay the claim in full (when following proper procedure).
Who establishes the pricing levels?
You do! You know what the market is in your area. Simply establish a price for your product and service that allows you to be profitable and offer a safe, quality installation. Be sure to back up your prices with market survey's and good record keeping of typical sales prices in your market, along with justification based on your cost of doing business.
How do I accomplish this?
It's surprising how simple it is to set up, if you follow the steps and guidelines listed below. Most insurance claims departments are just like you, they want to be treated fairly. Approach them that way and you will be successful!
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