If you work in a medical office, understanding how to correctly enter insurance payments is an important part of daily billing operations. Insurance payments affect everything from patient balances to reports and financial tracking. If payments are not entered properly, it can create confusion, errors, and even delays in cash flow.
Many practices use Medisoft to manage claims, insurance payments, and patient billing. It is one of the most widely used medical billing software systems because it helps simplify many of these steps. In this blog, we’ll explain where and how insurance payments are entered in Medisoft, why it matters, and how it can help your billing workflow run smoothly.
Understanding the Basics of Insurance Payments in Medisoft
When a claim is sent to an insurance company, the practice waits for a payment or an explanation of benefits (EOB). Once the payment is received, it must be posted in Medisoft to reflect the updated patient and insurance balance.
Insurance payments are typically entered in the Deposit List section of Medisoft. This is where all payments, whether from insurance or patients, are recorded. Once a payment is entered, it can be applied to specific charges or claims.
This step is important because it allows you to track:
- How much was paid
- Which claim or procedure the payment belongs to
- Remaining balances or adjustments
- Total deposits and income over time
By entering payments correctly, your records stay accurate and your financial reports reflect real numbers.
Step-by-Step Guide to Entering Insurance Payments in Medisoft
Below is a simple walkthrough of how to enter insurance payments in Medisoft. While the exact steps can vary slightly depending on your version, the overall process is similar.
Step 1: Open the Deposit List
The Deposit List is the central place where payments are recorded.
- Go to Activities on the top menu.
- Select Enter Deposits/Payments.
- This will bring up the Deposit List window.
Here, you will see all existing deposits, including patient payments, insurance payments, and other entries. This is also where you create a new deposit when a new payment comes in.
Step 2: Create a New Deposit
To record a new insurance payment, you need to create a new deposit.
- Click New on the Deposit List.
- A Deposit window will open.
- Enter the Date of Deposit. This should match the date the payment was received or posted.
- In the Payor Type, select Insurance.
- In the Payor Code, choose the correct insurance company.
This is an important step. Selecting the correct insurance ensures the payment is applied to the right claims.
Step 3: Enter the Payment Details
Now you can enter details about the payment:
- Amount: Enter the total payment amount.
- Check or EFT Number: Enter the number from the insurance company.
- Reference Number: You can add additional notes or reference details if needed.
This step helps keep your records clear and organized.
Step 4: Apply the Payment to Charges
After entering the deposit, the next step is to apply the payment to the correct charges.
- Click Apply on the Deposit window.
- Choose the correct patient and claim.
- Select the procedures or line items to which the payment should be applied.
- Enter the amount paid for each procedure.
If there are adjustments or write-offs, you can enter them here as well. This ensures that the patient’s balance and the insurance balance are both updated correctly.
Step 5: Save the Payment
Once all amounts are entered and matched, click Save. The payment is now recorded and applied.
You can go back to the Deposit List at any time to review this entry or make corrections if needed.
Why It’s Important to Enter Insurance Payments Correctly
Accurate payment entry is more than just data entry. It impacts the entire billing cycle. Here’s why it matters:
- Faster Account Reconciliation: When payments are entered correctly, it’s easier to match payments with claims and close out accounts.
- Accurate Patient Balances: Patients see the right amount they owe after insurance payments are posted.
- Fewer Billing Errors: Mistakes in payment posting can lead to unnecessary patient statements or incorrect follow-ups.
- Better Financial Reporting: Medisoft’s reports rely on accurate payment data. If payments are not entered properly, reports will not reflect the true financial position.
- Smoother Collections Process: Correct posting makes it clear which balances are outstanding and which claims are resolved.
Tips for Smooth Insurance Payment Posting
Many practices handle hundreds of claims each week. A few smart habits can help keep the process smooth and accurate.
- Double-check insurance company selection: Make sure the right payor is chosen before applying payments.
- Use the correct payment date: This helps keep reports and bank reconciliations aligned.
- Apply payments line by line: Posting to the right procedures reduces errors and saves time later.
- Keep notes or references: Adding reference numbers makes it easier to trace payments back if questions come up.
- Review reports regularly: Use Medisoft’s reporting tools to check for unmatched or unapplied payments.
These small steps can save a lot of time in the long run.
Common Mistakes to Avoid
Even experienced billers can make mistakes when entering payments. Here are some of the most common issues:
- Applying payments to the wrong insurance company
- Entering the wrong payment amount
- Forgetting to post adjustments or write-offs
- Using the wrong posting date
- Not saving or reviewing the entry after posting
Taking an extra minute to review each payment before saving can prevent errors that cause bigger problems later.
How Medisoft Helps Simplify the Process
One of the reasons many medical offices use Medisoft is because it makes payment posting more structured and organized.
- The Deposit List keeps all payments in one place.
- Payment application windows let you apply payments to specific claims.
- Reports and aging summaries make it easier to see what’s open and what’s paid.
This reduces manual tracking and keeps billing more accurate.
Advanced Options
If your office receives many insurance payments daily, Medisoft also allows:
- Electronic Remittance Advice (ERA) posting: This lets the software apply payments automatically from electronic files.
- Batch posting: Useful when you’re dealing with multiple payments from the same insurance company.
- Adjustments and secondary insurance posting: To handle more complex payment structures.
While not every practice uses these advanced tools, they can save a lot of time and reduce manual errors.
Conclusion
Entering insurance payments correctly in Medisoft is a key part of keeping your billing accurate, your cash flow steady, and your records organized. By using the Deposit List, selecting the correct payor, applying payments line by line, and reviewing your entries, you can avoid most common billing mistakes.
If your team needs expert help with Medisoft training, setup, or billing support, Computer Mate Inc is a trusted partner for medical offices across the country. They help practices streamline billing processes, stay compliant, and improve accuracy in daily operations. With the right guidance and support, your payment posting process can be fast, clean, and stress-free.