Drive Results with Strong Third‑Party & Agency Alignment!
What Are Third-Party Vendors?
Providers use third-party vendors, otherwise known as outsourced agencies, to handle Medicare-related work. Agencies may handle billing, appeals, check claim status, and receive payment for transactions on your behalf. Examples of outsourced agencies include:
- Billing agencies
- Clearinghouses
- Software companies
- Auditing firms
What Are the Provider’s Responsibilities?
Third-party vendors are expected to:
- Protect Health Insurance Portability and Accountability Act (HIPAA)-related information, such as protected health information (PHI) and personally identifiable information (PII).
- Complete tasks according to Medicare guidelines.
If a vendor doesn’t follow Medicare requirements, providers remain responsible for any violations.
How Can Providers Ensure Vendors Are Compliant?
If you hire an outsourced agency:
- Ask how they protect HIPAA-related information, such as PHI and PII.
- Information handled outside of the United States is at higher risk of security breaches
- Make sure their staff is knowledgeable in Medicare rules and regulations.
- Ask the vendor:
- If they’re familiar with CGS and CMS resources.
- If they report claim denials, rejections, and returned claims.
- What percentage of your claims need appeals, and what percentage of appeals are successful?
- If they check your remittance advice, and how they use that information.
- Ask the vendor:
- Understand how the agency charges for their services.
- Fees may be charged for each claim, each inquiry, etc.
- Make sure they only bill you for necessary transactions.
- To reduce unnecessary costs for you and the Medicare program, ensure agencies use self-service options, such as myCGS or the IVR, for claim status and eligibility.
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