"What is an irrevocable assignment?"
Quickie Consult 1198
Office Systems 110 OS
Preamble: Many of the issues I bring to you are very small, yet each issue is just that, an issue. If you take care of the small issues, then you will be able to build and more importantly, focus on the bigger issues...a larger practice and more family time. -Mark Studin 2006
"Neurosurgeon wanted to have breakfast with me....What I did"
Dr. Studin: So what's your question?
Guest Dr: Okay, what is an irrevocable assignment?
Dr. Studin: Okay. And in what context did you hear it? Hear about it?
Guest Dr: Uh, this was from your podcast about scumbag lawyer is taking a med pay money.
Dr. Studin: Okay. When you render a normal assignment, and assignment means that your benefits are assigned to you. Now a lawyer is the legal representative of the patient. And what occurs is that a lawyer can read the, can unilaterally decide on behalf of the client who gives him the power of attorney. You can automatically assign the power to do whatever they choose and reassign benefits. So, if you have an assignment of benefits, you're assigning the payment from the patient to you. That's what an assignment means. And that's checking the box on the claim form. Yes. But when you have an irrevocable assignment, and if you go into section 15 of the consults and you scroll down the fourth one down, I believe his assignment of rights and benefits and the key is rights.
Don't forget those rights because without the assignment of rights, you don't have permission to call the insurance company. And say, how come I wasn't paid? Because the patient didn't give you the right to call them, see any of the assignment of rights also. But when you have an irrevocable assignment, that means that once you give it to the carrier, the lawyer cannot come in and redirect the money because it's irrevocable. They can change it. Yeah. So, the key is though is to get it in quickly before the lawyer reassigns those benefits. And typically, the patient sees you before the lawyer and the lawyer knows that goes in a split. So, the day the patient comes in, you get that irrevocable assignment over before the lawyer gets the whole yard money hostage.
Guest Dr: So this is a, it's a separate document from everything else.
Dr. Studin: Yup. And again, you could find a sample sample language on the form. You could just use it and put your name on top. That's right on the consulting side. So, this would take the place of sending a lien two, since it's not a third-party case, it's a Med Pay case that they won't attack but they'll take one irrevocable assignment. Now again, I think there is lean language on here also double check. I don't see that in front of me. I don't remember. Well I sent one to med pay before and they say we don't take a week. Right, but this one isn't a revocable assignment. There were signs on the med pay to you, but remember these lawyers are going to be really fast in getting this stuff in because they want to hold your money hostage. They want to control the money and say, doctor, you take 30 40 50 cents on a dollar for you get nothing because I now have it in my possession now should the carrier pay them instead of you, you call the carrier up and say you have an irrevocable assignment, you screwed up and virtually every single circumstance that that has occurred, watch, you'll be the first.
It isn't the carriers issue the check to you called the lawyer and said, we made a mistake, send the check back to us.
Guest Dr: Gotcha.
Dr. Studin: But if I don't have that irrevocable assignment and the med pay, it goes to the lawyer, you're screwed, because then you have to negotiate with the lawyer to get paid and he's going to hold your money ransom. If you want to get paid, take care of.
Guest Dr: Can you simply send the patient to collections?
Dr. Studin Yeah. You can always do that, but good luck. You've been around long enough to know that that's not a high yield. You want to get paid upfront and quickly. All right.
Guest Dr: Thank you very, very much.