What information does insurance verification provide that is crucial for billing?

Insurance verification is a critical step in the revenue cycle because it confirms the specifics of a patient's insurance coverage, which directly impacts billing processes. This step clarifies what services are covered under the patient's plan, the extent of that coverage, any applicable deductibles or copayments, and whether prior authorizations are required for certain procedures.

Understanding these details ensures that medical providers can accurately bill the insurance company, anticipate the patient's financial responsibilities, and minimize the risk of claim denials, which could occur if services rendered are not fully covered by the patient's insurance. Thus, it ensures that the practice receives the correct and expected payment for services provided, ultimately helping in maintaining the financial health of the healthcare organization.