tracelogoRBWhy do I pay an administrative fee to HNS?














HNS wants you to understand why you pay an "admin fee" to HNS.


The HNS Administrative Fee is not a charge for processing claims. HNS
contracts with individual healthcare professionals, and with insurance
and managed care companies who utilize our network as their preferred
provider organization (PPO). Patients who have insurance with HNS
contracted payors often choose to seek care from an "in-network"
provider. The names of the "in-network" providers are listed on payor
websites and in the PPO Provider Directories provided to members
promoting steerage of new patients to our healthcare professionals.
HNS does not receive any compensation from the insurance companies
and managed care organizations that contract with HNS. The HNS
admin fee provides the network with revenue to fund the cost of the
services and administrative functions we provide.


Some of these services include:

  • Network Development
  • Credentialing / Recredentialing
  • Contract Negotiation
  • Quality and Utilization Management
  • Clinical Resources and Support
  • Central Claims Administration (central processing
    of claims to the contracted payors and disbursement
    of monies back to each provider)
  • Continuing Education
  • Electronic Claims Filing (to improve efficiency and
    faster payments)
  • Administrative Support Services, including HNS
    Service Representatives (to assist in resolving claims
    and/or payment issues)
  • Electronic Funds Transfer
  • HIPAA ERA 835 Files (automated payment posting)
  • Educational Website


The HNS Admin Fee is calculated against the allowable amount on each
member's EOB. Specifically, the admin fee is charged against the sum
of the deductible amount, the co-payment/co-insurance amount, plus
the amount paid by the health plan, for each service line on the EOB.


NOTE:  The "allowable amount" is the contracted rate that
the payor intends for the provider to collect for the service
provided that is represented by a particular CPT or HCPCS


Remember that all members' insurance plans have one or more of the following:


  • Co-payment
  • Co-insurance
  • Deductible


When the claim is adjudicated by the payor, the EOB and payment are
sent to HNS, most often in a large bulk payment and EOB file. HNS then
tracks and allocates all monies and EOBs received from each insurance
company for each HNS Healthcare Professional, and provides the EOB
and payment to each provider on the next scheduled HNS bulk provider
payment date.


HNS does not take an admin fee when, per the EOB, the provider will
not receive ANY payment for his services. HNS ONLY receives payment
for services for which the provider will be paid (whether the amount is
collected as a co-payment, deductible, co-insurance or from the insurance


Banker's Rounding

In calculating the HNS Admin Fee, HNS utilizes Banker's (or Statistician's)
Rounding. In use by most banking and financial institutions, this type of
rounding produces results that, on average, round numbers down as often
as they are rounded up. In any large set of numeric data, there is a fairly
equal distribution of even and odd numbers. Unlike conventional rounding,
banker's rounding prevents data from being skewed upward and also
prevents the data from being skewed downward. Banker's rounding is
considered the most unbiased form of rounding.


HNS' software rounds based on the number in the 3rd decimal place.


In Banker's Rounding:

  • If the third decimal is 0-4, the amount is rounded DOWN.
  • If the third decimal is 6-9, the amount is rounded UP.
  • If the third decimal is 5, the amount is rounded to the
    nearest EVEN cent.


The HNS Admin Fee is applied to the "allowable" amount, and the allowable
amount is calculated per service line on each EOB. Remember, the
allowable is the sum of the amount paid by the payor and the amount owed
by the patient (co-payments, co-insurance/deductible).


The total admin fees on a particular HNS Remittance Summary are the
sum of the admin fees for all service lines on the EOBs associated
with that remittance summary.


Examples of Banker's Rounding:

  1. 7.644 would round to 7.64 (the third decimal is a 4, so number
    is rounded DOWN)
  2. 7.647 would round to 7.65 (the third decimal is a 7, so number
    is rounded UP)
  3. 7.645 would round to 7.64 (the third decimal is a 5 and the 
    nearest EVEN cent would be 7.64, so number is rounded
  4. 7.635 would round to 7.64 (the third decimal is a 5 and the
    nearest EVEN cent would be 7.64, so number is rounded