AMA works with insurers to cut medical claim errors

Released today, the American Medical Association’s (AMA) fifth National Health Insurer Report Card show a decrease in error rates (19.3 percent in 2011 to 9.5 percent in 2012) that resulted in an $8 billion in health system savings. Correct billing reduced the work of administrative staff in reconciling discrepancies.

While the there was an encouraging increase in the drop of incorrect claims filed, the AMA noted that the commercial health insurance industry still paid one in ten medical claims incorrectly.

Other findings show:

• Private insurers improved their response times by 17 percent from 2008 to 2012.
• Health insurers have increased transparency rules. This reduction in proprietary edits has improved the flow of information to physician and has saved administrative time by reducing the number of claim reconciliations.
• Denials have increased from 2008. Overall the denial rate went from 2.10 percent in 2008, to 3.48 percent in 2012.

The National Health Insurer Report Card is an initiative of the AMA Health the Claims Process campaign.