Medical billing is a process of submitting the claims to the insurance companies in order to receive the money for the service rendered by the healthcare professional. Medical billing companies convert the medical services provided into cash by helping with a full range of medical billing services.

These companies do tasks such as preparing the claim form, submitting it to the insurance companies, following up the claims, collecting the receipt from the insurance company, mailing the invoice to the patient and handling the patient billing questions. Medical billing companies play an important role in the medical team. The vast knowledge of medical billing professionals comes to play each time a patient visits the doctor. They help the doctors and the medical team to focus on the health care system by taking the responsibilities of cash reimbursement, thus reduces the staff requirement in the doctor's office.

For a long time, medical billing was done on papers. However, with the advent of computers, medical billing companies are able to manage a large amount of claims. To provide fast and accurate services, these companies use medical billing software programs. Medical billing companies give a complete business solution to the billing process of the health care provider. As insurance companies and other health agencies need a highly detailed records of services provided to the patient, the demand for medical billing professionals has increased rapidly.

Medical billing companies offer challenges, rewarding experiences and good pay. The general skills required to work in a medical billing company are clerical skills, good organization, bookkeeping, computers and office skills. Medical billing companies pay competitive wages to the medical billers. The wage depends on the experience, level of training and skills.

Health care professionals depend on their reputation. Billing patients and insurance companies involve a complex system. Any error made at this stage could lead to complications and frustrations. Rejected claims cause agony in patients which in turn gives a bad reputation to the health care providers. So it's medical billing company’s duty to look into each minute detail before doing any claims.

When a patient visits the doctor for check-up or treatment, he/she gives the personal information such as name, age, sex, address and Insurance Company details to be recorded in his medical record. The doctor then updates the record with examinations, diagnosis, tests and treatments. The medical billing company staff provides a unique code for the patient’s details and prepares a customized form for individual patients. This has to be done very carefully, as any error will lead to rejection from the insurance company. The claim is then submitted to the insurance company for reimbursement. Upon verification, insurance company will reimburse a certain percentage of the claim. In case of any discrepancy, medical billing company will notify the patient and he has to pay the remaining amount to the doctor.

Medical billing companies take the responsibility of submitting the claim to the insurance company on time, so that the health care provider is reimbursed for the service rendered to the patient. These medical billing companies employ qualified medical billers to ensure quality service. The major advantage of medical billing company is that they reduce the errors in the submission by doing quality check. This helps in fast processing and reduces the denial of the claim. In order to eliminate any errors or to avoid the important data omission, medical billing companies use highly sophisticated software and techniques.To increase their efficiency, they make use of state-of–the-art billing system, EPM (Electronic Practice Management) and EMR (Electronic Medical Records). Medical billing companies not only submit the claim but also do data entry; resubmission and appeals; collections; comprehensive reporting and contacting the patients on need basis. Outsourcing the medical billing job to a company is cost- effective compared to the money required to employ a person to do the billing job at medical office. In house medical billing has lots of hidden costs. In addition to the labor cost, it also has system maintenance cost; supplies and form; postage; clearing house costs; phone calls; training and benefits to the employee. Outsourcing reduces the burden of administrative job to a large extent.