Direct billing

Direct billing is the arrangement under which a healthcare provider invoices the insurer or TPA directly for treatment, so the member presents their card, pays only their co-pay or deductible, and never settles the full amount.

Also called Cashless, Direct settlement. Updated

What actually happens at the counter

The provider swipes the card against the TPA's system, the system returns an eligibility answer, and for anything beyond a routine consultation the provider sends a pre-approval request. Approval comes back with what is covered and what the member owes. The member pays that share and leaves.

Where it breaks down

Pre-approval is the failure point, not eligibility. A member with valid cover at a direct billing provider can still be asked to pay in full if the treatment needs approval and the approval has not come back — evenings, weekends and public holidays are when this happens. The plan is working as designed; the client experiences it as the card being declined.

Direct billing is a network property

Whether direct billing is available is decided by the provider's arrangement with the TPA, not by the generosity of the plan. A comprehensive plan at a provider outside the TPA's direct billing network is a reimbursement claim.

Where this comes up

Related terms

In Rabt

Every one of these is a field in Rabt

Co-pay, network, age band, waiting period — Rabt holds them as data on the plan, so a quote states them the same way every time and a comparison can line them up.