How To Read Your Accounts Receivable Aging Report

The Buckets

An aging report groups unpaid balances by how long they have been outstanding, usually 0 to 30, 31 to 60, 61 to 90, 91 to 120 and over 120 days from the date of service or claim submission. Balances are shown by payer, and often separately for insurance and patient responsibility.

What To Look For

• The share of insurance A/R over 90 and over 120 days, and whether it is growing
• One payer with an unusual amount in the older buckets, which often means a credentialing, enrollment or contract problem
• Large balances on a few claims, which may be high-dollar procedures stuck in medical review
• Patient balances growing faster than insurance balances
• Credit balances, which may be overpayments that must be refunded

Days In A/R

Days in A/R divides total A/R by average daily charges. It shows, on average, how long it takes to collect a dollar billed. A rising number means claims are taking longer to pay or are not being worked.

Turning The Report Into Action

Every claim in the older buckets should have a status and a next step: pending with the payer, denied and appealed, needs a corrected claim, or should be written off with a reason. A report that only shows totals without that work behind it hides problems until the timely filing window has closed.