Frequently Asked Questions:

Medical Billing

1. How does one read the Norco statements?
The statements show all amounts that are currently open to the customer only. Any invoice that still has an open due amount will be listed, and any payment that has been received, or credit that has been issued and applied to one of the open invoices will be indicated, but does not always show the invoice to which it has been applied. Last payment information shows the date received and total payment. That amount may split between current (open) invoices and invoices that are paid in full so are in the history of the account. Comment lines may be added to amounts transferred to customer due - "Deductible", for example. Those comment lines are added only if information indicating such has been received from the insurance company. Questions regarding such issues should be directed to the insurance company.

2. What is assignment vs. non-assignment?
Medicare claims are submitted either assigned or non-assigned. If the claim is assigned, Norco is accepting Medicare's allowed amount as full payment on the claim. Medicare will pay 80% of the allowed amount, leaving 20% as customer due. If there is a secondary insurance, the 20% may be paid by that insurance. If the item indicates non-assignment, Medicare will consider the claim and any payment or denial will go directly the customer. Payment for the full charge is the responsibility of the customer. Customers can refer to the Medicare Summary Benefit Notification that is received on that item to clarify the amount due. The decision to bill on a non-assigned basis is generally due to the reimbursement allowed not covering Norco's cost or the criteria for coverage being vague or not met with documentation supplied or the quantity of supplies exceeding Medicare guidelines.

3. Have charges been billed to Medicare/Insurance?
Contact your billing representative to check on the status of the claim.

4.Why is the customer being charged a deductible?
Medicare and most insurances have a deductible that must be met and paid directly to the supplier. Until that deductible has been met, no payment will be made. Medicare Part B deductible is always $100.00 per calendar year. Often, insurance plans will cover the Medicare deductible. Contact the supplemental insurance company regarding the individual policy to see if that amount will be paid. Individual insurance policies differ as to the amount of deductible, but the basic concept of the customer paying directly to the provider until that deductible has been paid in full remains the same. Again, contact the individual insurance company regarding deductible status.

5.The insurance company notified the beneficiary that a contractual adjustment was made that wasn't reflected in the billing. What is the amount due?
Norco is continually adding insurance contracts into the system. Once added, the amount that is billed to the customer will show correctly. Check the insurance explanation of benefits sent from the insurance company. If the amounts due differ from the amounts indicated on the Norco statement, contact your billing representative.

6. Why are the amounts on the statement showing as my due without stating why?
Norco uses codes to indicate why a due amount is transferred from insurance expected due to customer expected due. If the reason noted on the statement is not clear, contact your billing representative for more information. If there is an indication to contact your insurance company, please do so. Call your insurance company to make sure you understand the percentages that will be covered, or the items that might be non-covered.

7. What is the purchase price of the equipment? When will equipment meet purchase price? What is meant by rent-to-own?
Most equipment billed through insurance companies is billed as a rental, with the exception of inexpensive equipment such as walkers, commodes and canes. Norco has contractual agreements with several insurance companies, and the purchase "allowable" is often dependant on the contract. Contact your Norco customer service representative for that price. If an item is considered a "rent-to-own" item, the monthly rental allowed rate will charge until it reaches that price. For example, if the allowable purchase on an item is $100.00, and the rental rate is $18.71 per month, the equipment will bill out 5 months at full rate (5 x 18.71 = 93.55), and the remaining $6.45 will charge on the 6th month. Once that full purchase allowable is met, the item will transfer to customer owned.

8. Why is the date on the statement different from the date the equipment was actually delivered?
The date that shows on the statement is the date that Norco entered the transaction. An invoice dated 6/25/00 may be for the rental for the month beginning 6/24/00. If insurance information is received that indicates an additional amount due from the customer, the accounts receivable department will transfer that due to the customer. The date of the transfer, not the date of service, is indicated on the statement. Look at the invoice number and match with the invoices previously sent. If the invoices are not available, contact your billing representative.

9. Why aren't addresses and phone numbers printed on dunning letters and purchase option letters?
Much information sent to customers is sent from the corporate office. That office sends to customers throughout the company for all Norco branches. We are working on ways to pull local branch phone numbers on those documents. 

10. Why doesn't the last payment amount show as a payment on the statement?
See the answer to question #1.

11. Why is more than one statement sent each month?
There is only one statement per month, but each also includes the invoices that have generated since the last statement date. The statement itself indicates "STATEMENT" at the top, and has a perforated edge to send in with remittance. The invoices indicate "INVOICE" at the top. The amount shown at the bottom of the remittance slip (the perforated edge) is the total amount due from the customer for that billing.

12. How can the customer payment history be obtained?
There is no program currently in place to simply print out the customer payment amounts. This is an involved manual process. It is important to keep records of payments for such purposes as taxes, budgeting, etc. If needed, contact your billing representative for information.

Norco Medical Division •  800-657-6672  •  www.norco-inc.com •