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Updated on:
March 31, 2025
July 25, 2022

Why is Eligibility and Benefit Verification Important for ABA Therapy?

Balaji Ramani has more than 20+ years of experience in Healthcare Revenue Cycle Management. Balaji has expertise in building, training, mentoring, and managing end-to-end healthcare RCM teams. He has experience using the Web for information sourcing, research & analyses to enable ‘patient and payer satisfaction’ in the healthcare space.

ABA Providers Recover Dues From Patients To Efficient Your Account Receivables

Applied behavior analysis (ABA) can significantly improve behavioral issues. Unfortunately, many insurance payers deny their customers the funding necessary to receive this therapy. Payers can justify these denials by citing the complex criteria that determine mental illnesses.

So, payers have constructed a list of requirements clients must meet to receive benefits. Nearly 27% of healthcare claims denials stem from registration and eligibility problems. Prudent ABA practices invest significant resources into verifying patients’ benefits before committing to therapy. 

Here’s why eligibility and benefit verifications are critical for ABA therapy providers. 

Scheduling Mishaps

Failures to account for contractual changes cause many denials across all healthcare specialties. Administrators often assume that because a payer previously covered services, the same applies today. Unfortunately, insurance contracts can change dramatically within a short period. Also, many policies do not match the calendar year. 

Consumers may be unaware of these shifts. This combination of ignorance and failure to review benefits leads to uncovered sessions. Once billers receive a denial for such reasons, the client must pay out of pocket. Avoid this mistake by consistently reviewing relevant contract details when scheduling therapy. 

State Changes

Most states have well-defined standards regarding ASD coverage. These rules primarily affect children, with most offering coverage until 18 or 21 yrs. When moving to a new location/state, ABA providers must carefully review the local coverage guidelines of the payers.  

EHR Integration

Electronic health records (EHRs) store and transmit critical client information. The client’s session/chart is the record’s primary component, but EHRs provide more information than just the chart. They can also provide necessary facts regarding patient eligibility, especially if integrated through EDI. 

Providers who do not use such checks can miss crucial details that expose benefit exceptions. When receiving a new client, always attempt to check their benefits first.

Non-Appealable Claim Denials

Medical coders have the luxury of appealing claim denials and frequently receive reimbursements through appeals. Unfortunately, this fall-back option can make staff complacent when verifying eligibility. Practices must remain mindful that denials almost always negatively impact RCM. Twenty-four percent of potentially avoidable denials are non-recoverable. An additional 60% are only situationally recoverable. Those that are appealable take time away from regular duties. Insurers often place time constraints on appeals, forcing workers to drop other projects. Such delays can completely derail critical billing workflow. 

Mental Health Condition Pre Verification

ABA therapy pre-verification is uniquely demanding. Insurers require detailed documentation demonstrating the diagnosis and the subsequent Plan of Care. If billers fail to have these documents on file, the claim process hits a roadblock. Ensure that a certified BCBA has provided the needed Plan of Care paperwork to receive authorization. 

Plutus Health works to turn the coverage verification your staff secures into revenue. Our expert team synchronizes with providers and insurers to maximize reimbursements. Through this process, we reliably generate higher, faster income for the ABA agency. Build your financial security by contacting a representative today. 

Key Takeaways

1. Failure to account for changes in insurance contracts frequently leads to denials. 

2. Different states mandate varying levels of mental health coverage.  

3. EHRs provide a foundation from which to extract eligibility information. 

5. Insurers mandate that physicians provide documentation certifying a diagnosis followed by a proper Plan of Care. 

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Faq

What are the top workforce challenges facing ABA therapy providers in 2025?

ABA providers are grappling with high staff turnover (up to 65%), rising burnout, administrative overload, and stagnant reimbursement rates. These challenges directly impact care continuity, clinical outcomes, and operational performance.

How does operational inefficiency affect ABA organizations?

Operational inefficiency costs ABA teams up to 10 hours per staff member per week, contributing to burnout, denied claims, and longer accounts receivable (A/R) cycles. These inefficiencies ultimately result in reduced revenue and patient dissatisfaction.

Why is burnout in ABA clinicians considered a financial risk, not just an HR issue?

Burnout leads to costly turnover, lower client retention, and decreased productivity. Recruiting and replacing a BCBA or RBT can cost up to $5,000 per hire, plus months of lost revenue and disruption to morale.

What are effective strategies for improving ABA staff retention?

High-performing ABA organizations invest in clear career pathways for BCBAs and RBTs, align compensation with market benchmarks, and foster peer-led mentorship, flexible schedules, and wellness programs.

How can ABA organizations reduce the administrative burden for clinicians?

Automation tools like Plutus Health's Zeus streamline eligibility verification, denial management, and billing, reducing manual workloads by 5–10 hours weekly per clinician and improving clean claim rates by 95%.

What's the ROI of outsourcing RCM in ABA therapy organizations?

Outsourcing revenue cycle management can improve collections, reduce denials by up to 30%, and free clinicians from billing-related admin tasks, resulting in better client care and financial outcomes.

What's a proven example of operational transformation in ABA?

One $200 million ABA network partnered with Plutus Health to automate eligibility and accounts receivable (A/R) processes. The result: $2M reduction in legacy A/R and a 97% Net Collection Rate.

How can ABA organizations prepare for value-based care models?

By improving operational efficiency, investing in technology, and ensuring workforce stability, ABA leaders can align outcomes with reimbursement. Plutus Health supports this transition with scalable RCM and automation strategies.

Balaji Ramani

Balaji Ramani has more than 20+ years of experience in Healthcare Revenue Cycle Management. Balaji has expertise in building, training, mentoring, and managing end-to-end healthcare RCM teams. He has experience using the Web for information sourcing, research & analyses to enable ‘patient and payer satisfaction’ in the healthcare space.

FAQs

What are the top workforce challenges facing ABA therapy providers in 2025?
How does operational inefficiency affect ABA organizations?
Why is burnout in ABA clinicians considered a financial risk, not just an HR issue?
What are effective strategies for improving ABA staff retention?
How can ABA organizations reduce the administrative burden for clinicians?
What's the ROI of outsourcing RCM in ABA therapy organizations?
What's a proven example of operational transformation in ABA?
How can ABA organizations prepare for value-based care models?

FAQs

What is ABA therapy billing?
What CPT codes are used for ABA therapy in 2025?
How do you bill Medicaid for ABA services?
What are common ABA billing errors to avoid?
How does credentialing affect ABA billing?

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