Processing

Billing Boot Camp

Agenda

Why should Processing know about billing?

Billing Basics
Breakdown of an invoice
Billing Timeline
Critical Concepts
Flex screens
Partnering with CSC
Agenda

Why should Processing know about billing?

Billing Basics
Breakdown of an invoice
Billing Timeline
Critical Concepts
Flex screens
Partnering with CSC
Why should Processing know about
billing?
Why should Processing know about
billing?

A delay in NB/Renewal or amendments can vastly affect the member's bill.

Handling changes and renewals in a timely manner helps prevent customers
losing months to bill which makes each bill more expensive for them due to no
fault of their own
Any premium bearing change will affect the bill.
Quality Transformation encourages next call avoidance, which can be
achieved by partnering with Processing.
As processors talk with agents more and more, they are going to be asked
how the billing will be impacted.
Building this knowledge is a good development opportunity for any proc
interested in Audit, CSC, Collections, Underwriting, Premium Processing, etc.
Agenda

Why should Processing know about billing?

Billing Basics
Breakdown of an invoice
Billing Timeline
Critical Concepts
Flex screens
Partnering with CSC
Billing Basics

Available pay plans: Monthly (12), Monthly (9), Quarterly (4), Semiannual
(2) and Annual (1)
Minimum due determined by current term premium balance divided by
remaining times to bill plus service charge and fees if applicable. If any
prior term premium has hit since the last invoice, it will be billed in full as it
is fully earned.
Service charge per invoice unless: Annual pay or EFT Autopay (Flex Chek)
Payment options: Recurring Bankcard, Flex Chek, Agent, Website, VRU
(Automated hotline), Regular mail or Service Center Representative.
Agenda

Why should Processing know about billing?

Billing Basics
Breakdown of an invoice
Billing Timeline
Critical Concepts
Flex screens
Partnering with CSC
Breakdown of an invoice
Breakdown of an invoice
Breakdown of an invoice
Agenda

Why should Processing know about billing?

Billing Basics
Breakdown of an invoice
Billing Timeline
Critical Concepts
Flex screens
Partnering with CSC
Billing Timeline

A B C D E S
Status E sets
once FLEX has
sent request to
cancel to the
policy side.
Notice of
cancellation has
been sent to the
policyholder.
Agenda

Why should Processing know about billing?

Billing Basics
Breakdown of an invoice
Billing Timeline
Critical Concepts
Flex screens
Partnering with CSC
Critical Concepts

Key definitions:
Earned and Unearned Premium
Returned and Added Premium
Holding- Credit and Debit
Impacts to Billing
Closing An Invoice
Reinstatement
Stop codes
Last Day to Accept
Status P
Critical Concepts

Key definitions:
Earned and Unearned Premium
Returned and Added Premium
Holding- Credit and Debit
Impacts to Billing
Closing An Invoice
Reinstatement
Stop codes
Last Day to Accept
Status P
Critical Concepts
Critical Concepts
Critical Concepts
Critical Concepts
Critical Concepts
Critical Concepts
Critical Concepts
Critical Concepts

Key definitions:
Earned and Unearned Premium
Returned and Added Premium
Holding- Credit and Debit
Impacts to Billing
Closing An Invoice
Reinstatement
Stop codes
Last Day to Accept
Status P
Critical Concepts

Impacts to Billing: Closing an invoice

Closing an invoice forces the billing account to move on without
payment, losing a time to bill
Losing a time to bill increases premium installments
This also allows a policy to skip over a non-pay cancellation
Closing an invoice can be detrimental to future billing installments as well
as opportunity for a poor payment history to be assessed by Underwriting
Critical Concepts

Impacts to Billing: Reinstatement

Reinstatement brings a policy back into active status, but if no past due
payment made, future installments can increase
Earned premium not collected could mean we are providing coverage
without the billing account being caught up
If reinstating to make a change and re-cancel and a stop code is not
placed, an invoice can populate and cause confusion
Critical Concepts

Impacts to Billing: Stop Codes

Stop code 10 prevents:
Accounts from going into non-payment or cancellation status
Future invoices
Late notices
Refunds
Flex Chek
Critical Concepts

Key definitions:
Earned and Unearned Premium
Returned and Added Premium
Holding- Credit and Debit
Impacts to Billing
Closing An Invoice
Reinstatement
Stop codes
Last Day to Accept
Status P
Critical Concepts

Last Day to Accept

Sets after grace period

Located on policy specific page one
The last possible day payment is acceptable before policy begins non-
pay cancellation process
Once past LDTA, although PACK may show Active, the policy is
considered cancelled and must go through reinstatement criteria for
approval to reinstate
Critical Concepts

Key definitions:
Earned and Unearned Premium
Returned and Added Premium
Holding- Credit and Debit
Impacts to Billing
Closing An Invoice
Reinstatement
Stop codes
Last Day to Accept
Status P
Critical Concepts

Status P

Policies will only go into Status P when a change effective date is after the
Cancellation Date.
Once policy goes into non-pay status, it is common to see this warning,
but if your effective date is before the Insured Cancel Date shown on
Flex, you can press enter and proceed
This safety was put into place so changes are not made for a potentially
future cancelled policy
Agenda

Why should Processing know about billing?

Billing Basics
Breakdown of an invoice
Billing Timeline
Critical Concepts
Flex screens
Partnering with CSC
FX52- screen 1
FX52- screen 2
FX52- screen 3
FX52- Flex Invoice Inquiry
 FX52- Policy specific page 1

On this page, we find the Last Day To Accept and prev. LDTAs. Notice the reinstate dates predate
the cancellation dates, which means payment was made during nonpay status, but before the LDTA.
 FX52- Policy specific page 2 (no TTBB lost)

On this page, we find the Times to Be Billed and Times Billed. Keep in mind, this does NOT tell us the pay plan.
It might very well be correct as in this example (12 TTBB- DIM), but in the next slide, I will show an example of losing a TTBB.
 FX52- Policy specific page 2 (TTBB lost)

Here is an example where we have lost a TTBB.

This can happen if payment is made and we are past the 8 day window to invoice, or if an invoice if forcefully closed.
FX66
FX61
Agenda

Why should Processing know about billing?

Billing Basics
Breakdown of an invoice
Billing Timeline
Critical Concepts
Flex screens
Partnering with CSC
Partnering with the CSC

Awareness of billing concepts can assist in next issue avoidance

Reassessing best practices for both business units will cause understanding
and teamwork for all
Member focus is a main goal of the 2020 Vision, and CLPC and CSC can
reach this goal with a solid partnership
Questions?

PR3414- Billing Quick Check

Advanced Billing Training session in the works
Contact me at any time: grissos1@nationwide.com