Q. How does billing affect our tax-exempt status with the Internal Revenue Service?
According to a November 8, 1993 letter from the office of the counsel to the General Assembly, the Attorney General of Maryland, "charging and collecting a fee for fire and rescue services to defray the costs of operations is not inconsistent with and, in fact, helps further the charitable purposes of such companies."
IRS publication 598 (Rev. February 1995) speaks to unrelated trade or business income of tax-exempt organizations. In this publication, the IRS clearly states that income generated by tax exempt organizations must be "substantially related" to the performance of the organization of its exempt purpose or function and must "contribute importantly" to the accomplishment of an exempt purpose. Medical Claim-Aid recommends that you notify the IRS of your billing program. Our clients have received letters from the IRS insuring their non-profit status.
Q. Who sets our fees?
You do. Medical Claim-Aid will give you suggestions using customary and reasonable charges recognized by Medicare and other insurance companies in your area.
Q. What percentage of the total billed dollars can we really expect to receive?
Each area differs slightly, however 65 to 75% collection ratio is about average. This ratio factors in the allowances given to insurance companies for participating with them.
Q. Are we still allowed to have an "Ambulance Plan" or membership program (i.e., a specified donation made by a family to cover all ambulance transport for that family for a year)? If so, how does that affect billing for the transport?
Yes. Medicare recognizes ambulance plans as "co-payments made in advance". We bill the insurance first, then after they process the claim, any "patient balance" remaining which would normally be billed direct to the individual will be written off as an ambulance plan credit. The patient will not receive a bill. Of course, specific rules apply. Medical Claim-Aid will help you customize your plan to insure actuarial soundness by Medicare’s standards.
Q. What about the uninsured? Do we have to send bills to everyone? Do we have to bill the "patient balance" portion to the patient, or can we just write it off?
In order to comply with Federal regulations you must bill everyone, whether they have insurance or not.
Q. How much of the total billing revenue will really come from the patients themselves?
In our experience, 91% of the funds come directly from some form of insurance. Approximately 9% comes from the patient in the form of co-payments and the uninsured.
Q: Why Choose Medical Claim-Aid?
Largest EMS Billing Company in Maryland
Caring and Professional Staff
Prompt and Excellent Reports