What is the primary function of direct billing?

The primary function of direct billing is to submit insurance claims directly to the insurance carrier. This process streamlines the payment procedure for both healthcare providers and patients. By sending claims directly to insurance companies, providers facilitate faster reimbursement and minimize the administrative burden associated with collecting payments from patients. This method allows providers to maintain a focus on patient care while ensuring that they receive payment for services rendered, as the insurance system can efficiently handle the billing and payment process without requiring patient intervention.

Other options, although relevant to billing practices, do not accurately capture the essence of direct billing. For example, paying in installments pertains more to financing options rather than the direct submission of claims. Detailed itemized billing statements focus on transparency and breakdown of services, rather than the act of billing itself. Collecting payment at the time of service refers to upfront payment processes, which can enhance cash flow but does not relate to the core function of direct billing to insurance carriers.