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How to Improve Patient Fee Estimation Accuracy: 5 Proven Strategies

Team Fuse
Team Fuse

Since the No Surprises Act took effect in 2022, healthcare price transparency has become a top priority for hospitals, providers and patients. This act transformed many aspects of medical billing, aiming to protect patients from surprise bills while also providing them with crucial information to make informed decisions about their care. 

The law is comprehensive, but pricing transparency is one critical aspect that practices and healthcare organizations must comply with. Accurate price estimates not only meet transparency requirements, but they are also something that patients expect. Poor patient cost estimate accuracy falls short, and that could impact patient trust, satisfaction and even payment likelihood.

Even still, many organizations struggle to supply accurate patient fee estimates. In 2023, one report found that just 36 percent of hospitals complied with price transparency rules. As of 2024, the Centers for Medicare & Medicaid Services (CMS) had received over 16,000 complaints regarding potential violations. Recent data also suggests that arbitration related to the No Surprises Act is increasing healthcare spending waste, affecting practices like yours.

Accurate patient fee estimates are more crucial than ever. In this guide, you'll learn five proven solutions to help your practice improve estimation accuracy, fulfilling your legal obligations under the No Surprises Act while also meeting patient expectations.

Leverage Advanced Healthcare Price Transparency Tools

Pricing transparency begins with feature-rich patient payment estimation tools. Leveraging technology can help your practice fulfill transparency requirements without the administrative overhead. Manual processes often require hours of dedicated work, which software can do faster and more accurately.

The best tools integrate with EHR and practice management systems, pulling relevant data from payer contracts and portals to accurately calculate potential out-of-pocket costs. Features like granular insurance verification provide up-to-date information and verify coverage at the CPT code level. By pulling data from procedure cost databases, patient payment estimation tools can deliver more precise figures, leaving little room for guesswork or error.

More advanced tools can even estimate copays and perform automated deductible calculations after confirming benefits. Modern solutions can utilize granular benefits data from payers to improve medical billing accuracy and create more precise estimates for patients.

Implement Comprehensive Patient Cost Estimation Workflows

Structured and comprehensive workflows ensure that accuracy isn't left to chance, but instead becomes a repeatable operational capability for your practice. Start by establishing an estimation process. A solid workflow can look like this:

1. Appointment Scheduling 

2. Patient Onboarding

3. Insurance Verification and Benefits Checks

4. Estimate Generation and Delivery

Patient payment estimation tools will do much of the heavy lifting, but staff should stick to a well-defined workflow to ensure that every estimate is accurate and delivered accordingly. Train your team to follow the workflow and utilize the tools your practice employs to their full advantage. Staff should be knowledgeable about interpreting eligibility responses and following benefits checking protocols.

Insurance benefits verification should occur 48 to 72 hours before a patient's scheduled visit. Those eligibility checks should trigger the automatic generation of a patient fee estimate, allowing your practice to deliver the information within 24 hours. The sooner patients receive pricing information, the better.

Enhance Data Quality for Better Patient Fee Estimation

High patient cost estimation accuracy hinges on the quality of your data. Unfortunately, inconsistent and outdated data is a significant source of discrepancy between what estimates practices provide and what patients actually end up paying. Common issues that providers face when creating estimates include:

• Imprecise CPT Codes

• Missing or Inaccurate Code Modifiers

• Failing to Separate Professional and Facility Fees

Not using code modifiers is a particularly frustrating issue. Modifiers help to provide more information about a service or procedure. Failing to use them or doing so incorrectly can significantly impact medical billing accuracy. Yet, it's surprisingly common, with one study finding that up to 59 percent of code modifiers used in encounter data didn't match clinical data.

To prevent data quality issues, regular audits and routine data cleanup processes are essential. Strong data governance ensures that downstream processes, such as patient fee estimation, don't rely on outdated or incorrect information.

Establishing Good Faith Estimate Healthcare Standards

Under the No Surprises Act, providers must supply Good Faith Estimates (GFEs) to uninsured and self-pay patients when requested.

Best practices recommend that all patients become informed of their right to a GFE. When scheduling patients, staff should notify uninsured and self-pay patients of GFE availability. Practices also need to familiarize themselves with compliance requirements, create replicable templates and ensure GFEs are in clear, understandable and accessible formats.

It's also important for practices to keep versioned documentation for every estimate. Separate versions can help keep track of estimations when the scope of care changes. If that happens, practices must have a clear protocol for delivering an updated estimate and communicating changes to patients. Under the law, practices must supply an updated GFE when scope changes result in changes to expected charges.

The No Surprises Act also includes strict documentation standards. Every GFE requires the following information:

• Patient Name

• Date of Birth

• Description of Services Provided

• Itemized List of Costs

• Diagnostic and Service Codes Associated with Each Service

• Provider Name, NPI and Tax ID Number

• Practice Address 

Improving Medical Billing Accuracy Through Training

Powerful patient payment estimation tools go a long way, but that doesn't mean your staff doesn't need training. Software can handle much of the complexity involved, but your team needs to understand insurance plan verification, common coding errors, payer contract nuances, modifier usage and accuracy issues.

Invest in staff education. Ongoing training programs can ensure your team is well-equipped to handle any challenge that arises while actively working to improve estimation accuracy. Help your staff update their certifications and implement strict quality assurance measures.

Empowering your team through training and education makes a significant difference, enabling them to deliver more accurate estimates, communicate more effectively with patients and help prevent discrepancies that cause unwanted billing surprises.

Selecting Patient Payment Estimation Tools That Scale

Choosing the right tools is just as crucial as creating efficient workflows and addressing data quality issues. Tools can make or break your practice's approach to delivering patient fee estimations, ultimately impacting your ability to comply with the law and meet patient expectations.

Review your options and choose a software platform that can scale with your practice. As your needs evolve, you must have tools that can adapt and grow with you. Consider integration capabilities, reporting features and the quality of vendor support. The best options will integrate seamlessly with your existing EHR and practice management systems, all while offering comprehensive reporting capabilities. You also want to ensure that software vendors provide robust support that'll keep operations running smoothly, no matter what challenges you encounter. 

Also consider how software can impact your bottom line. Will it speed up insurance verification and estimate generation? How much admin time can a platform save your practice, and how accurate is the software's approach to calculating estimates? The answers to those questions matter.

Maximize Patient Satisfaction with Transparent Cost Estimates

Accurate patient fee estimates make all the difference, improving both patient satisfaction and collection outcomes. One study found that upfront pricing transparency can lead to a 27 percent increase in upfront patient payments. Meanwhile, patient satisfaction increases by up to 88 percent.

The truth is that patients want and expect healthcare price transparency through accurate estimations. With new laws requiring providers to be more upfront about patient costs, taking steps to deliver more precise estimates could benefit your practice in more ways than one.

Let Fuse build trust with your patients and reduce surprise bills. Fuse is an end-to-end solution for CPT code-level insurance verification and patient fee estimates. Fuse calculates exact out-of-pocket costs for every visit, supporting your quest for complete transparency while also improving your practice's revenue cycle.

Request your Fuse demo today to see how it works in the real world and discover how improved patient cost estimation accuracy can benefit your practice.

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Healthcare Price Transparency
Automation & Technology
Best Practices

FAQs

What accuracy rate should healthcare providers target for patient fee estimates?

Providers should strive for patient cost estimation accuracy rates of at least 90 percent. That means that estimated pricing should be within 10 percent of actual patient responsibilities. Anything beyond 10 percent in either direction could erode patient trust.

How do good faith estimates differ from standard cost estimates under the No Surprises Act?

A Good Faith Estimate is required by law for uninsured and self-pay patients. Under the No Surprises Act, providers must supply a GFE to applicable patients. Furthermore, there are strict documentation standards and delivery timelines that practices must follow. Standard cost estimates can apply to all patients, including those with insurance coverage. Cost estimates typically detail out-of-pocket costs, taking a patient's unique coverage into account. Estimates should include information about deductibles, copays, co-insurance and other relevant costs.

What are the most common causes of inaccurate patient cost estimates?

Inaccurate and outdated information are among the most common causes of pricing errors. More specifically, incorrect CPT codes, modifiers, incomplete data about benefits and misclassification of applicable fees are often to blame for inaccuracies.

How can small practices improve estimation accuracy without major software investments?

Smaller practices can improve estimation accuracy by establishing structured workflows and investing in staff training. Strong benefit verification protocols, standardized documentation and regular data audits can also help improve estimation processes while preventing substantial errors.

What should patients be told when the estimated accuracy cannot be guaranteed?

Practices should inform patients of their rights, including the right to dispute a bill. All estimates should include a disclaimer about pricing variability, and staff should communicate that there's no guarantee for estimate accuracy. If the scope of care changes, practices must provide updated estimates and communicate with patients.

Questions?

If you're a patient seeking clarity on the cost of care, a provider looking to automate practice admin and offer transparent billing, or looking to see how your rates compare with peers, we're here to help.
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