An advance rate is the percentage of a claim's expected value that a buyer pays the provider upfront at the time of purchase, with the rest released once the payer settles the claim.
What it means
The advance rate answers a simple question: of what a claim is expected to collect, how much does the provider receive right away? If a claim has an expected net reimbursement of 1,000 dollars and the advance rate is 82 percent, the provider receives 820 dollars at purchase. The remainder, less the agreed discount fee, follows when the payer pays.
What sets the advance rate is not the practice owner's personal credit. It is how the practice's claims actually perform with its payers: how reliably those claims clear and pay. A practice whose claims pay cleanly and predictably supports a higher advance rate.
Copay's advance rate typically falls in the range of 80 to 85 percent. The stronger and more predictable a practice's claim performance, the closer to the top of that range it tends to land.
Why it matters for your practice
For a practice owner, the advance rate decides how much working capital reaches your account on day one versus how much arrives later. Because it is driven by claim performance rather than personal credit, a practice with a thin credit file but clean, well-paying claims can still receive a strong advance. The better your claims perform with payers, the better your advance rate.
How this relates to Copay
Copay sets your advance rate based on how your claims perform with your payers, not your personal credit, and it typically falls in the range of 80 to 85 percent of a claim's expected net reimbursement. You receive that share the next business day when Copay purchases the eligible claim.
Written by Eitan Glick, CEO, Copay Inc.
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