Resources for dental offices
Billing and coding are integral to the financial health of any dental practice. While they might not be the most exciting part of the job, they directly impact how services are recorded, how claims are processed, and how quickly your practice gets paid. A strong grasp of CDT codes, insurance requirements, and claim submission workflows helps reduce delays and avoid costly errors. In this guide, we’ll review the fundamentals, highlight common mistakes, and offer practical tips to help your team stay accurate.
Apr 25, 2025
Overview of Dental Billing and Coding Systems
Your dental practice needs standardized coding systems to document procedures, communicate with insurance providers, and get proper reimbursement, which directly impacts your revenue cycle management.
CDT Codes in Dental Billing and Coding
Current Dental Terminology (CDT) codes serve as the foundation of dental billing and coding. The American Dental Association (ADA) develops and updates these codes annually to reflect new dental practices and technologies. Each CDT code follows an alphanumeric format, beginning with "D" followed by four digits. For example:
D0120: Periodic oral evaluation
D2740: Crown — porcelain/ceramic substrate
These codes are organized into categories representing different types of services, such as diagnostic, preventive, restorative, and surgical procedures. When you apply CDT codes correctly, you minimize claim denials for fair reimbursement.
ICD-10-CM Codes in Dental Billing and Coding
International Classification of Diseases (ICD-10-CM) codes document the diagnoses that establish medical necessity for treatments. Unlike CDT codes that focus on procedures, ICD codes identify the underlying conditions requiring treatment, such as:
K02.9: Dental caries, unspecified
K05.6: Periodontal disease, unspecified
You'll need these codes particularly when submitting claims to federal programs like Medicare and Medicaid, which often require diagnostic justification for procedures.
CPT Codes and Dental Billing
Current Procedural Terminology (CPT) codes come into play when dental care overlaps with medical treatment. Developed by the American Medical Association, you'll use these codes when dental procedures have medical implications or when medical insurance might cover dental services. For example:
70300: Radiologic examination of teeth
Using CPT codes successfully allows you to cross-code between dental and medical insurance, maximizing reimbursement potential for patients with dual coverage.
Each coding system serves a specific purpose in your billing process, and you can add modifiers to provide additional context for special circumstances.
The Dental Billing and Coding Process
Patient Registration and Insurance Verification
Accurate demographic information creates the foundation of successful billing. One typo in a name or policy number can delay your payments by weeks.
You should verify insurance 2–3 days before appointments, allowing your staff to confirm coverage, check for preauthorization needs, and inform patients of costs and available dental payment programs before they arrive.
Many practices now use patient portals and dental scheduling software to improve communication about coverage. These digital tools help patients review benefits, understand costs, and update insurance information before appointments. You'll also want to talk to dental patients about insurance before arrival to reduce claim denials.
Procedure Documentation and Coding
Your thorough documentation should include detailed clinical notes, such as SOAP notes, radiographs, and comprehensive histories that justify treatment necessity.
Different procedures require specific documentation elements. For complex cases, you'll need detailed narratives explaining treatment choices, as insurance companies rely entirely on your records to evaluate claims.
When your documentation falls short, claims are often denied or downcoded, resulting in reduced payments. Coding errors typically delay payments by 30–60 days, creating cash flow problems for your practice.
Claim Submission in Dental Billing
After documenting and coding services, you'll submit "clean claims" containing all required information, correct codes, and meeting payer-specific requirements to insurance providers.
You can use claim scrubbing, which is an automated review that catches potential errors before submission. This preventive step reduces rejections and improves your cash flow.
Remember that every insurance company has unique submission guidelines. Modern systems allow you to process multiple claims simultaneously and track their status in real-time, reducing administrative work while speeding up payment timelines.
Payment Posting and Account Reconciliation
Payment posting involves applying received insurance payments to the correct claims and patient accounts. Accurate posting provides a clear picture of your revenue and helps maintain clean financial records.
Account reconciliation compares expected payments to actual receipts, helping you catch underpayments, overpayments, and processing errors. It's an important step in protecting your practice's revenue.
Denied claims should be reviewed, corrected, and resubmitted promptly. Tracking denial patterns can reveal recurring issues such as coding errors or missing documentation, allowing you to address them proactively. Billing software can automate much of this process, but regular oversight is necessary to catch discrepancies and maintain accuracy.
Common Challenges in Dental Billing and Coding
Coding Errors
You might encounter coding mistakes in three main ways:
Upcoding: Billing for more expensive procedures than performed. Beyond being unethical, this can trigger audits and penalties.
Undercoding: Not billing for all services provided. Many dentists undercode because they fear audits or don't know the appropriate codes.
Unbundling: Separately billing for procedures that should be billed together.
These coding errors impact your reimbursements and can also affect dental case acceptance, as patients may lose trust in your billing transparency.
Train your staff regularly on CDT code updates and audit your coding practices routinely to prevent these errors.
Documentation Gaps Affecting Dental Billing
Incomplete clinical notes give insurance companies reason to reject your claims. For procedures like crown placement, your notes should clearly document necessity, materials used, complications, and pre-treatment conditions.
Create documentation templates that capture all necessary information consistently to satisfy insurance requirements while fitting into your clinical workflow.
Review documentation regularly to catch incomplete information before it causes claim denials.
Insurance Complexity
You'll face insurance verification challenges like determining eligibility, coordinating benefits when patients have multiple plans, and distinguishing between medical and dental coverage for certain procedures.
Connect digital verification systems with your practice management software to simplify this process. Patient portals that gather insurance information before appointments also reduce your administrative burden.
Compliance and Legal Risks
Incorrect coding can trigger audits and penalties for your practice. Claim denials from compliance issues typically delay payments by 30–60 days.
The ADA updates CDT codes yearly. Using outdated codes almost guarantees your claims will be rejected.
Schedule regular compliance training, use a compliance calendar to track code updates, and conduct quarterly internal audits to prevent problems before they attract outside attention.
Best Practices for Optimizing Dental Billing and Coding
Use Technology That Supports Your Workflow
Modern billing tools can do more than claim submission; features like automated coding suggestions and claim scrubbing help catch errors early, reducing delays and rework.
Integrating your practice management software with your EHR can cut down on manual entry and minimize mistakes. Set clear protocols for how your team enters data, manages claims, and follows up.
AI-based billing tools are also becoming more common. Some flag likely coding issues or predict denials before submission. These tools can be helpful, but they work best when paired with sound judgment and experience.
Prioritize Staff Training
A knowledgeable billing team is a requisite. Hire experienced staff or certified coders, and schedule regular training to stay current with code changes. Run routine audits to catch patterns before they affect your bottom line.
Clinical documentation also plays a role. When providers clearly document procedures and medical necessity, it strengthens claim accuracy and reduces denials. Practices that invest in both admin and clinical training often see fewer billing issues and stronger collections.
Denial Management
Improve your collections with a structured approach to denied claims through organized workflows for tracking and analyzing denials. Monitor dental KPIs to identify trends and areas for improvement.
Group denials by type to identify patterns
Create clear procedures for quick resubmission with supporting documentation
Set targeted reduction goals and track your progress
Outsourcing Considerations for Dental Billing and Coding
You'll often findthat outsourcing billing operations costs less than maintaining in-house teams, particularly if your practice handles complex claims, experiences staffing turnover, or struggles with high denial rates.
Outsourcing typically reduces your billing costs while improving collections. When selecting a service, evaluate their dental-specific expertise, technology integration capabilities, performance metrics, and communication protocols. Consider partnering with dental service organizations for comprehensive outsourcing solutions with additional benefits.
For centralized support and resources, consider joining a DSO to access additional services and reduce administrative burdens.
Keep Your Practice Running Smoothly
Dental billing and coding play a significant role in keeping your practice running smoothly. These practices help you get paid on time, avoid claim issues, and stay compliant. But even with the best systems in place, it’s hard to keep everything moving if you’re short on staff.
That’s where Teero can help. Teero connects dental offices with reliable, qualified hygienist, whether you need someone for a day, a few weeks, or long-term. It takes the stress out of staffing so you can focus on your patients, not your schedule.
Check out our website to see how it works.