Salient Aspects in Medical Insurance Claims
Because the cost of medical expenses is getting more and more expensive each year, people are depending on health insurance to help them pay partially the cost of the medical expenses, which are helpful in their financial and health conditions, and which prompts them to subscribe in health insurance because of the affordable terms, which is paying the premiums in either monthly or annually.
If the time comes when the health insurance subscriber is in need of using her health insurance benefits for medical treatment, the first thing to do is for her to go to the healthcare provider’s office or clinic and hand over her insurance card and in exchange, she receives a demographic form for her to fill up with required data, such as: patient’s name, date of birth, address, Social Security number or driver’s license number, the name of the policyholder, and any additional information about the policyholder, and a government-issued photo ID.
Once the paperwork is completed, the patient proceeds for consultation and treatment to a designated physician, such that whatever else are serviced to the patient will all be reflected as chargeable costs which will be recorded by a medical biller and coder of the healthcare service provider, to which this recorded document will serve as the bill or medical insurance claim.
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Once the coded bill summary is handed to the medical biller, he/she enters all information into an appropriate claim form using a software billing application, which will further be sent to the payer, which is the health insurance company of the patient, and to a clearinghouse, a third-party company, which operates by validating medical claims to check on errors in the document claim.
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When the health insurance company receives the medical claims, if there is no clearinghouse doing the validation, there are three possibilities that the health insurance company can act on the medical claim: accept all expenditures and pay the bill or deny the claim on account of a billing error, to which the bill is returned to the healthcare provider to be corrected or reject the claim on account that the services rendered are not covered within the health plan of the patient. Therefore, this indicates the importance of a clearinghouse of which the original bill can be reformatted to include corrections which were validated by the clearinghouse firm and once the new medical claim is presented to the health insurance company, there is a good chance that options, such as denying the claim due to an error and rejection of the claim on account that the services are not covered by the health plan, may be eliminated.