Insurance companies often make over-payments to subscribers and medical providers by mistake. These errors are caused due to duplicate payments, pricing changes, oversight by the accounting department, fraudulent claims or insurance coverage changes. These claims where an insurance company is entitled to a refund, are called Insurance Recoupment, Insurance Payback or Takebacks.
These incorrect payments are incredibly hard to recover and often requires the involvement of a Debt Collection Agency. Over-payments cause millions of dollars of losses and write-offs for the insurance companies every year.
The 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 the money have failed can limit losses on such accounts.
If you need an experienced collection agency for insurance recoupment or takebacks – Contact us