Health Insurance Claims Processing Errors on the Rise

The rate of inaccurate claims payments increased last year among commercial health insurers, according to the American Medical Association’s annual National Health Insurer Report Card.

Commercial health insurers had an average claims-processing error rate of 19.3 percent, a 2 percent increase from 2010, according to the AMA findings, which are based on a random sampling of 2.4 million electronic claims in February and March.

The AMA estimates the increase in overall inaccuracy represents an extra 3.6 million in erroneous claims payments compared to last year and adds $1.5 billion in unnecessary administrative costs. Eliminating health insurer claim payment errors would save $17 billion annually, the AMA estimated.

Physician billing and practice management companies have had to implement new tools and techniques to insure that their clients done feel the effects of this insurance industry trend.  


One Response to “Health Insurance Claims Processing Errors on the Rise”
  1. Claims Processing System says:

    Hi, claims processing is a tedious task both submitters as well as insurance providers are at tremendous pressure, which often leads into errors at both the ends. Claims processing systems seems to be the answer.