Virtual Credit Cards (VCC) are a mechanism by which some insurance companies may attempt to pay your practice for medical services. Increasingly, insurance companies send these 16-digit credit card numbers via mail, fax or email as payment.
Did you know that there are additional fees associated with these types of digital transactions? The fees can be as high as 6%! CMS recently clarified its EFT operating rules and standards on the FAQ section of its website.
YOU DON'T HAVE TO ACCEPT THESE VCCs AS PAYMENT! Health plans, or any of their clearinghouses or payment-related vendors, are required to offer an EFT payment option with no fees.
If you receive a VCC, you can refuse it and request another form of payment, including an electronic funds transfer (EFT). Providers simply need to call the number on the fax or email and request the alternative payment. (Remember to document the details of the call for future reference).
A sample VCC Processing policy and sample opt out letter is available in the "Revenue Cycle Management: Sample Policies" section of Practice Solutions.
Contact Natalie Cohen, MBA, MHA, LAMMICO Practice Management Specialist at 504.841.2727 or firstname.lastname@example.org for more information.
This is not legal advice, and is not intended to substitute for individualized business of financial judgment. It does not dictate exclusive methods, and is not applicable to all circumstances.