News from the medical industry shows that the American Medical Association or AMA is working with private health insurers to lower the rates of medical billing errors within the American healthcare system. For a while now, the AMA has been talking about a collaborative effort to make medical billing more efficient, and it seems that this initiative is starting to pay off, according to this year’s National Health Insurers Report Card, an annual report released by the AMA to document national trends.
Overall Error Rates for Medical Claims
The new report shows inaccuracies for private health insurer payments dropping from nearly 20% in 2011 to just under 10% in 2012. The AMA claims that this 50% reduction has saved the industry over $8 billion, and that there’s a lot more potential for improvement. In a press release this month, AMA Board Chairman Robert M. Wah is quoted as saying that first-time accuracy in medical claim payments “saves precious healthcare dollars and frees physicians from needless administrative tasks” – that’s the idea behind these sorts of efforts to increase accuracy. These improvements help physician offices manage revenue cycles, while they also help you to understand your financial responsibility and contribute to greater transparency in the healthcare market.
The National Health Insurer Report Card also provide some other assessments of this year’s trends within the medical industry. While the report shows improved response times for medical claim payments, and indicates greater transparency by health insurance companies, it also shows that medical claim denials are now on the rise. The AMA sites a prior decline between 2008 and 2011 that was reversed this year with an increase of nearly 70%. This increase, according to the AMA report, was across the board, as all major insurers declined many more claims than they had the previous year. Denials will be an issue that third party medical advocates and others will continue to evaluate in order to make sure that you are getting a fair shake when it comes to your healthcare costs.
We face a lot of challenges in identifying and controlling our health care costs. Keep informed on what’s happening in the health care industry as it affects you.