Insurance companies often make over-payments to subscribers and providers by mistake. These errors are caused due to duplicate payments, pricing changes, oversight by accounting department, fraudulent claims or insurance coverage changes. These claims where an insurance company is entitled for a refund, are called Insurance Recoupment or Takebacks.
These incorrect payments are incredibly hard to recover and often requires involvement of a Debt Collection Agency. Over-payments cause millions of dollars of losses and write-offs for the insurance companies every year.
Insurance company has the right to request a refund for the excess money that has been disbursed. States laws vary, but insurance companies must act quickly as many states put short time-frames for an insurance company to request a refund (Statute of Limitations).
Sometimes insurance company recovers money by reducing future payments, also known as offsetting.
Recoupment is one of the best ways to increase profitability and cash flow for an insurance company. Hiring a Collection Agency after 60-90 days if in-house efforts to recover money have failed can limit losses on such accounts.
If you need an experienced collection agency for insurance recoupment or takebacks – Contact us