medical billing rates

Medical Billing Service Fees Explained

Considering bring on a medical billing service? The average cost of this service can cost as little as $100 a month to over $10,500 a month depending on the size of your company, the plan that best fits your needs, and whether or not you want on-site servers.

Hundreds of thousands of medical bills are processed every day and sometimes, they’re processed incorrectly. Minor errors and late billing leads to financial loss for medical practices every day. Find out today why a medical billing service may be right for you.

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There are several package options for a medical billing service which allows flexibility to meet the needs for your business and your clients. The packaged and services offered can vary greatly. Depending on the patient volumes your practice experiences you may need a larger package option to accommodate your client's needs. Larger companies may find their best fit will be packages offering a flat rate fee with unlimited encounters. A company with lower volumes may want to choose a package where a fee for each service offered is applied as needed which can cost as low as $1.40 per service.

Cost Cutz Buyers GuideSome basic billing options are as follows:

  • PERCENT OF NET PAYMENTS: One common option for a medical billing service is paying a percent, selected by the billing company, of the net payments collected. This works well for smaller volume billing as the third party company will collect a percent of the total amount your company gets paid.
  • PERCENT OF GROSS PAYMENTS: Much like the previously mentioned option this payment method your company will be billed based on the gross number of claims submitted.
  • ALL-INCLUSIVE BILLING SERVICES: While this method will determine by the rates of the company you select (more on this below) it simply means paying a third party billing company to handle all billing actions from deductibles and co-pays to any denied claims.
  • HYBRID: You, of course, will have the option with many billing services to select a hybrid option. This common option means that some services may be handled at a flat fee where others may be charged by percentage. This option is great for a company that may need more assistance with coding than billing and vice versa.


On average over $120 billion is lost due to denied billing claims whether it be from using incorrect coding or taking too long to bill. This means that hiring a service to handle medical billing can prevent a great deal of financial loss for your company.

Because a medical billing service is a third-party company whose sole job is to handle billing this means less unpaid bills falling through the cracks. This allows clients to be quickly and accurately billed. The process you can expect with a medical billing service will typically look like the patient being examined or undergoing any procedure necessary and immediately following all information needed such as insurance information will be sent to the third party. The billing service will be responsible for billing the patient and insurance company which is all determined by using code. The codes simply describe details about the patient’s procedure or examination so they can be accurately billed.

Pro’s of hiring a medical billing service:

  • Reduced administrative duties. Hiring a billing service allows admin more time to more accurately focus on their duties without the added stress of billing or missing patient/insurance information
  • Process claims faster
  • Immediately verify insurance coverage
  • Nearly eliminate loss of money due to coding error or late billing
  • Quicker collection meaning more money in your company’s pocket.
  • Overall improved patient satisfaction due to quicker and easier billing methods.


Expect a setup fee when hiring a medical billing service. The average set up fee does not typically exceed $250 or may be free of cost and included in your startup. Set up fees apply when the company you hire takes the time to integrate their billing system with your systems allowing them to receive information in a timely manner.

ADP AdvanceMd offers standard staring packaged at just $169 a month. This service best accommodates billing for companies for small to medium volumes. They offer “build a bundle” services allowing for customization that best fit the needs and services required for billing from your practice as well as preplanned packages detailing all services that will be covered. They also offer their most popular billing service system at $429 per month per provider. This package includes unlimited encounters.

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NeuMD is an easy to use option offering cloud-based billing procedures. With several different packages, their Practical Solution package can is $149 per month and will handle patient records, tickets, claims, scheduling, and eligibility verification. The most exclusive package offered is referred to as the Ultimate Solution and costs $249 per month. This package included all features offered. One of their best offers is the ability to participate in a free trial for the service you have selected.

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Medical Billing Star also offers a 7-day free trial of their packages. With Medical Billing Star you will be charged a 4.99% rate for a team including 7 specialists and a 5% increase for collections. They also offer a plan with coding only and no billing. You can expect to pay a rate of $0.99 for this service which cuts down on incorrect coding being used resulting in missed and inaccurate billing.

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We want to help you find a cost-effective medical billing service! There are several billing service options to flexibly fit your practices needs and help cut down on the yearly loss of billing with errors or billing too late. Offering your patience ease of billing with accurate and timely statements increases the overall morale and trustworthiness of your company. Get a quote from a service provider today!

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