Most medical billing companies charge a percentage (4%–10%) of collections, while others use flat monthly rates or per-claim fees. In 2025, value-based models are also emerging that tie fees to revenue performance.
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Answer reviewed by Ken Ahbar, Certified Medical Billing Expert – updated August 2025
In 2025, medical billing companies charge providers using a few common structures. The most popular model is a percentage of collections, typically ranging from 4% to 10%, depending on volume and specialty. For smaller practices, flat-rate billing (e.g., $1,200/month) can simplify budgeting. Some companies charge per claim—usually $3 to $7 each. As billing evolves, value-based pricing is growing in popularity: fees are adjusted based on how much revenue the billing partner collects for the practice. Other add-ons like coding audits, eligibility checks, or denial appeals may carry extra fees. The key for providers is to compare not just price, but performance—what denial rates look like, how quickly claims are paid, and how responsive the billing support team is. A low rate isn't helpful if collections lag or patient statements are confusing.
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Answer reviewed by Ken Ahbar, Certified Medical Billing Expert – updated August 2025