The #1 way insurance companies make their profit
I want to talk to you today about what insurance companies really don’t want you to know. And then I have a checklist. We’re going to go down 10 things. I’m just going to cover one today. And I think, when you understand this one thing, you’ll probably get, and understand, that there’s a lot more to it than you realize. So, what insurance companies don’t want you to know.
When I first started chiropractic, first of all, I own Genesis, a software company and chiropractic billing service. Scheduling, documentation, billing. We’re a billing service, I own a billing company. When I started chiropractic and chiropractic practice I had no idea about anything about billing, coding, documentation. Audits were just starting to happen. But I quickly realized what a big need that was. So I started to dig in and I actually went out and found some people outside of the chiropractic profession, in the finance world, in the technology world, in the artificial intelligence world, that’s how I wound up with Genesis as a company. But what I started to realize is that insurance companies are just like every other company. They’re made up of people, process, and technology. They want to turn a profit. But what I did not realize is how they actually make their money.
I used to think that it was just simple. They collect a bunch of premiums from patients and they don’t pay insurance claims. That’s of course one way, but there’s actually much more to that. When we’re talking about how they make profit, over 50% of insurance company’s profits are made on what is known in the financial world as the float.
Float is interest. Float is interest on money that is not yours. In this case, your money, the chiropractor’s money. So the insurance company is making interest on your money and it’s not their money. When is is not their money?
It’s really interesting because in the real world, on Wall Street for example … again, my partners today, in Genesis, are from the financial world, from Wall Street in technology. On Wall Street, every time a transaction happens on Wall Street, by the end of the day everybody has to get paid. All the parties involved in any transaction and on Wall Street, a transaction can be infinitely more complicated than an insurance claim. Diagnoses codes, procedure codes, all that good stuff seems complicated to us, but on Wall Street they’re way more complicated and by law everybody has to be paid by the end of the day and the technology exists to make that happen.
So you understand the technology exists today for you to be paid the moment or the moment after you’re finished adjusting the patient. All right so, when you start to realize that insurance companies are actually making more than half of their profit on the interest that should be on your money. The interest on your money. Meaning, after you see the patient, that next moment the money is technically yours. Everything after that is bologna. We’re going to start talking about all this stuff in a little bit more detail and how they actually … First of all, think about these things. How do insurance companies get to rig the system so that they have thirty days, for example, to pay your insurance claim? Why are there diagnosis and procedure codes? Why are there modifiers? Diagnosis code linking? Why is there the ability to deny your claim, medical necessity, documentation? Why does all that stuff exist?
So, what I’m going to start to talk to you about over the next few days is all the little details that we take for granted as we think is normal, or they should be there, or it’s for the patient’s benefit, or medical necessities all about the patient, or about the performance of the doctor, or about the results that you get is really a bunch of nonsense actually. Actually the moment that you adjust that patient that money is yours. Insurance companies make more than half their profit on interest on your money.
So I’m going to talk to you about, again, over the next few days, the top ways they’ve actually been able to rig the system, put this in place. Then eventually, maybe I’ll get into a little bit more about Genesis and how we’ve actually … helping doctors leverage technology, and automation, artificial intelligence, and processes, and people to actually beat them at their own game. We’re the only company that’s been able to do that with artificial intelligence patented.
Not to talk about Genesis, I just want to help you understand how insurance companies, what they’re really up to. It’s a business and it’s their right to run it and the rules are what they are so if we want to change them, we either got to change the rules or we got to learn to learn how to play by the rules and beat them at their own game.
Hope for this was a little bit helpful. Again, insurance companies are making more than half their profit on interest on your money sitting in their bank accounts.