Ophthalmology and Optometry Coding Alert

Question: How often do we need to update our signature-on-file forms? Also, can you describe what these forms do?

New York Subscriber

Answer: Most payers allow offices to create a form that a patient signs and is then kept in the patients chart. These signature-on-file forms basically state that the patient authorizes the doctor to file claims that accept assignment from the insurance payer on behalf of the patient without an original signature from the patient on each claim form. Medicare has language in the Medicare Carriers Manual that it accepts as a lifetime signature on file.

Most commercial payers will accept only a one-year signature on file. Practices are wise to have patients fill out a form for these payers at least once a year. This only works if the physician accepts assignment from the payer for all claims being filed on behalf of the patient. Accepting assignment means that the doctor is agreeing to accept the amount allowed as a fee from the insurance payer. Usually the payer pays 80 percent of the allowed fee and the patient is responsible for the co-insurance payment of 20 percent of the allowed fee. Any charge in excess of the allowed fee has to be written off the account.

Answers to reader questions contributed by: Raequell Duran, president, Practice Solutions, Bakersfield, Calif.; Lise Roberts, vice president, Health Care Compliance Strategies, Syosset, N.Y.; Catherine Brink, CMM, CPC, president, Healthcare Resource Management, Spring Lake, N.J.