Did you know some “insurance” companies actually charge dentists to receive the money they’re already owed? 😵💫
It sounds unbelievable, but it’s true.
Many “insurance” companies use Virtual Credit Cards (VCCs) to reimburse the dentist. When a dental practice processes those payments, they may unknowingly pay credit card processing fees…often 2–3% of the reimbursement!
Let that sink in…
✔️ The dentist already accepted a discounted contracted fee.
✔️ They provided the treatment.
✔️ They submitted the claim.
✔️ The claim was approved.
And then dentists are forced to pay ANOTHER fee just to receive the already discounted reimbursement! 🤬
Paying a 2-3% fee may not seem like much. See what you think after we walk through the math:
-A busy private dental practice may process at least $100K in insurance reimbursements each month. Let’s use $100K for this example.
-2-3% of $100K is a LOSS of anywhere between $2,000-$3,000 each month!
-That’s an annual loss of at least $24K-$36K!
I believe that hard-earned money should stay in the dentist’s bank account, NOT the “insurance” company’s.
Fortunately, many states have recognized that this isn’t a fair business practice. Across the country, legislatures are passing laws requiring those companies to offer providers a fee-free payment option, such as ACH or paper check, rather than forcing practices into fee-based virtual credit card payments.
When I review my client’s financials, I often uncover these insidious money drains. This is one more example of why practice owners need to understand the laws in their own state.
I recently completed a 50-State Dental Insurance Payment Choice & Virtual Credit Card Reference Guide. It outlines which states have enacted protections and what those laws require.
If you’d like a copy, send me an email Ge*****@********CC.com
My goal is to help private practice owners keep more of what they earn. Whether your goal is to negotiate better contracts, transition out of network, or become completely fee-for-service, understanding the rules is the first step toward greater financial freedom.
I can help you navigate this calmly & methodically, with minimal impact to your practice. DM me if you’d like to maximize your profits without cramming more patients into your schedule.
