Question: We have an in-house membership discount plan for patients without insurance where the patient pays $400 per year to get 2 cleanings, exams, etc. and 10% off dental work. We need to create a fee schedule for this plan so our books aren’t all out of whack. As of now, when person pays their annual fee, there is a big credit on their account until they use up all their benefits. So we need a way to zero out that annual fee so it doesn’t keep showing up. How would you recommend setting up a fee schedule for this?
Example: So just to be clear, let’s say patient X comes in to pay their annual fee and while they are there they get a cleaning, have an exam, and get fluoride. When we enter those procedures in the ledger they have set fees attached to them. So after their visit, if they paid $400 for the membership fee, maybe they only used $300 in services once we add them to the ledger. So they have a $100 credit on their account that won’t be reconciled until their next appointment likely 6 months later. Then at that next appointment, let’s say they get another cleaning and an exam and have some xrays so they have a $200 balance, which right now we enter as a patient courtesy credit for $200 and then their account is at zero. So you see how this really messes up our books?!? Any help you can give us would be appreciated!
Answer: Consider setting up a Membership code in your dental software for the annual membership fee. This code is unique to your practice and is used to track your membership enrollments. When the patient pays for the membership it will get applied to the code set up in your system so that your AR remains accounted for.
Next, Set up an insurance group with your membership plan name. Then you can attach the fee schedule to that plan and you can put that the plan covers 100% of preventative codes, etc… That way you can easily identify that patient is part of the Membership Group. Change the Insurance group to not take assignment of benefits and to not generate claims so it does not land on your outstanding insurance claim report.
If you need assistance with setting this up within your software we recommend reaching out your dental software support. They can give the step by step specifics to your software. By setting up the Membership Plan in your software this way it helps keep your ledgers clean, clear and accounted for.
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