Electronic Claim Submission

We know that "Medical Billing is a Process of Submission of Bills/Claims to the Insurance Company in a specified format for the service rendered (for the treatment given) by the doctor for the patient."  And also we know that the most widely used form is Health Care Finance Admin-1500 designed by the Health Care Financing Administration (CMS 1500 or HCFA 1500).

But instead of Sending in Paper form, We can also use Electronic transmission of claims. Here are the advantages sending the claim electronically instead of paper claims.

  1. Electronic Submission of Claims (Electronic Data Interchange or EDI) can help reduce paperwork, eliminate printing and mailing expenses, and improve claim   payment accuracy.

  2. No concerns of claims being lost in transit, no concerns regarding data entry errors being made by insurance staff while processing claims, less rejections,   less turnaround time between the process of data and process of claim by the insurance company.

  3. When you file an electronic claim, you also save valuable time. When a paper claim is filed, the U.S. mail may take a few days to deliver the claim. The  insurance company must digitize the information, then it must process the claim and, finally, the company has to mail the statement and reimbursement    back to you. With electronic claims, you send the claim through Internet connection. This takes as much time as picking up the telephone and calling the  company. The insurance carrier instantly receives the claim, the claim is already digitized and the company can process the claim immediately.

Now you may ask a  question, since Electronic claim transmission is acceptable and useful, then why do we need still to use CMS 1500 to send the claims.The answer is : we cannot completely wipe off the Paper format, because there are some scenario, you need to send only by paper claims. We will see later about that scenario

        

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Medical Billing–Patient Insurance

Patient Insurance

We know that, patient has to give his insurance information to the Doctor before the treatment. Collecting the patient insurance information is very important data entry part to avoid delayed or denials.

Either at the time of appointment or at the time of patient visit the practice(Check in), patient insurance information has to be collected. If it is existing patient, then we need to verify the existing patient insurance information which is already in the file(or computer system).

Very Important. For New Patient, we need to collect signed copy of HIPAA consent form. For more details, please check here.

The following information has to collect from the patient

1. Insurance Company Name

2. Policy No (Unique number to identify the patient within the insurance system)

3. Policy Group No (Identifies in which plan the patient enrolled with the insurance company)

4. Effective Date (From which date, benefits or covered services are allowed)

5. Relationship to the Patient(Patient may have the insurance on his name, or he/she may be covered by one of the family member)

6. Insured details such as first name, last name, etc if the patient is not the same as insurer.

7. Copay and deductible amount

And also, we need to scan the patient insurance card back and front part into the system. Sample Insurance card here.

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Different format of Medical Forms

 

In the last section, we said submission of claims to the insurance company in a specified format. Let us see some important format as follows

1.  HCFA(Health Care Financing Administration)  1500 form or CMS(Centers for Medicare and Medicaid Services) form.
It is a standard form that non-institutional providers use such as your family doctor or specialist used send claims. Mostly individual
Physician charges are billed on the CMS 1500 form

2.  UB-04( uniform institutional billing claim form) Form (formerly UB-92 OR CMS-1450)
This form is used to submit claims for institutional providers such as hospitals. Some insurance accepts CMS 1500 form to submit  hospital billing. You should always check the insurance company which form they prefer to bill hospital charges.

You can see sample CMS 1500 and UB04 Form here

        

Sample CMS 1500 and UB04 Form

CMS 1500 Blank Form

CMS1500805

CMS 1500 Sample Filled Form
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Sample UB04 Form

UB04_Red


eClaimManager Practice Management System.  For subscription, please contact vbsenthilinnet@gmail.com

Preview CMS 1500 Form



Nagata EDI Tool :  Create CMS 1500 Form using  EDI 837 Professional




EDI RESTful Web Service API

  1. JSON to EDI 837 Professional Claims
  2. Parse EDI 837p Message into JSON
  3. Parse EDI 835 Message into JSON
  4. JSON to cms 1500 Form

Medical Billing Process

Medical Billing is a Process of Submission of Bills/Claims to the Insurance Company in a specified format for the service rendered (for the treatment given) by the doctor for the patient. Why the doctors approach the insurance company for the payment? Since the Majority of patients has insurance coverage and details of such coverage are provided to the doctor before the treatment. So it is the responsibility of the doctor to send the claims to the insurance company and get paid for the treatment given.

Here is the overall medical billing process. In the later section, we will see more detail on each section.

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Insurance Verification:
Process started from here and usually front desk people are doing this process. Its a process of verifying the patients insurance is active or inactive by calling insurance or through online verification. If the insurance is inactive, it does not make any sense to send the claim/bill to the insurance company to get paid. So the front office people have to make sure that patient insurance is active even before the patient appointment. If the insurance is not active, then they have to collect the fee from the patient itself(In medical billing, this normally called as Self Pay claim or Patient Responsibility claim).

Charge Entry:
Charge entry is nothing preparing the claim to be sent to the insurance company. After getting the treatment details and patient disease details from the doctor, the billing department will start preparing the claim.The claim details, that are needed to get your insurance claims processed are entered here, and includes, the face sheet of the patient, doctor details, information about the insurance coverage of the patient and billing information.

Payment Posting:
Payment posting is simply posting payments from the insurance company into the system. The insurance company sends a check along with an Statement(This is statement is called as Explanation of benefit , shortly as EOB). On the EOB the insurance company will tell you the allowed amount and the amount they paid.

Denial Management:
The insurance companies reject(deny) paying claims for a number of reasons. Incomplete claim form, inconsistent patient information, etc.The insurance company indicates the reason for the denial in the Statement. Billing department will resolve those errors and again submit the claim to the insurance company.

Here is the overall medical billing process. In the later section, we will see more detail on each section.

image

 



Questions or feedback are always welcome. You can email me at vbsenthilinnet@gmail.com.

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Implement custom UserDetailsService for spring security

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Move List box item up and Down using MVC Design Pattern

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Move List box item up and Down using MVVM Design Pattern

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MVVM CRUD with Spring 3.1 and Hibernate 4 and ZK - Part 3

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ZK Passing Parameter between two files using MVC - Part 3.

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Buttons

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    History of Present Illness

    HPI - One of the main component of Clinical History.

    EMR Use cases

    In this category, let us see some common use cases in the doctor office.

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    Claims adjudication and payment

    The Following picture demonstrates how insurance company processing the claims received from the clearing house. 

    How to install Maven in the Windows

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    EDI 5010 Documentation 837 Professional - Loop 2000C Patient Hierarchical Level

    LOOP 2000C Patient Hierarchical Level and  and LOOP 2010CA – Patient Name

    EDI 5010 Documentation – 837 Professional IEA Interchange Control Trailer

    IEA – Interchange Control Trailer

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    EDI 5010 Documentation–837 Loop 2000A - HL–Billing Provider Hierarchical Level

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    Let me just summarized the information which i understood clearly about PQRS . The following information are taken from different websites and some of them of my own question and answer Eye rolling smile. And also I just want to have a reference about this, so that when I get chance to implement this, I can always come and refer here. At the end, I just summarized my thought on how we can implement in the EMR PMS Application.

    EDI 5010 Documentation 837 Health care claim : Professional

    Looking for best Practice Management software ? Please email at vbsenthilinnet@gmail.com


    If you are new to Medical Billing, then please read this article
    first.
    If you are new to EDI, then  read the following articles

    1. What is an EDI ?
    2. EDI Transactions 

    3. Understanding EDI Structure
    4. How to Read and Understand EDI File
    5. EDI Instruction
    6. Beginners Guide to EDI X12 (including HIPAA)
    7. What is EDI Transaction Loops and Segments?
    8. Understanding EDI-Loops, Segments, and Elements

     


    We will see the complete documentation on 837 with different use case sample EDI File.

    837 Loops (Click each of the loop to see the complete documentation)

    EDI 837 Professional Loops and Segments


    1. ISA Interchange Control Record
    2. GS  Functional Group Header
    3. ST Transaction Set Header
    4. BHT Beginning Hierarchical Transaction Segment
    5. LOOP 1000A Submitter Name
    6. LOOP 1000B Receiver Name 
    7. LOOP 2000A Billing Provider Hierarchical Level
    8. LOOP 2010AA Billing Provider Name
    9. LOOP 2000B Subscriber Hierarchical Level
    10. LOOP 2010BA Subscriber Name
    11. LOOP 2010BB Payer Name
    12. LOOP 2000C  Patient Hierarchical Level
    13. LOOP 2300 Claim Information
    13. LOOP 2300 Date information
    14. LOOP 2300 CLIA Number
    15. LOOP 2300 Prior Authorization or Referral Number
    16. LOOP 2300 K3 Segment
    17. LOOP 2300 Health care Diagnosis Code
    18. LOOP 2310A Referring Provider Name
    19. LOOP 2310B Rendering Provider
    20. LOOP 2310C Service Facility Location
    21. LOOP 2320 Other Subscriber Information (Coordination of Benefit COB)
    22. LOOP 2330A Other Subscriber Name(Coordination of Benefit COB)
    23. LOOP 2330B Other Payer Name (Coordination of Benefit COB)
    24. LOOP 2400 Service Line
    25. LOOP 2430 Line Adjudication Info (Coordination of Benefit COB)
    26. SE Transaction Set Trailer

    27. GE Functional Group Trailer
    28. IEA Interchange Control Trailer

     
    Looking for best Practice Management software ? Please email at vbsenthilinnet@gmail.com

     

    EDI 837 Examples

    Please note ; all these examples are tested against WPC First Pass software.

    You can download trial version here.

    Also, you can download the following trial version software to view/validate EDI File.

    1. EDI Notepad
    2. HIPPA Document Viewer 2
    3. On Line Validator American Coders
    4. On Line Validator EDIVance

    The following open source converts X12 EDI File to XML and 1500.
    OopFactory X12 Parser

    The following URL discuss about other open source in EDI Software.
    Comparing Open Source EDI Software

     

    Download all  EDI 837 Use cases

     

    Sample EDI 837 File with different use case

    Use case 1
    Bill with Individual NPI
    Patient is same as the Insurer (Self).
    Bill to Patient Primary Insurance.
    No of Claims : 1
    Claim No : 249
    Download All files
    Use case 2
    Bill with Individual NPI
    Patient is same as the Insurer (Self).
    Bill to Patient Primary Insurance.
    No of Claims : 2 (Two different patients, same primary insurance and same rendering provider )
    Claim No  : 249 and 250
    Download All files


    Use case 3
    Bill with Individual NPI
    Patient is same as the Insurer (Self).
    Bill to Patient Primary Insurance.
    Patient is referred by another Physician (Referring Provider)
    No of Claims : 1
    No of Line Items : 4
    Claim No : 251
    Download All files

     

    Use case 4
    In use case 4, we will combine the above three use cases claims and make one EDI File. So this EDI File will contain  3 Claims
    Download All files
     

     

    Use case 5
    Bill with Group  NPI
    Patient is same as the Insurer (Self).
    Bill to Patient Primary Insurance.
    No of Claims : 1
    Claim No : 252
    Download All files

     

    Use case 6
    In this use case, we will combine all the claims created so far (use case 1 to use case 5) and we will make as one EDI File.
    No Of Claims : 4
    Claim No : 249, 250, 251 and 252
    Download All files


     

    Use case 7
    Bill with Individual NPI
    Patient is NOT as Same as Insurer
    Bill to Patient Primary Insurance.
    No of Claims : 1
    Claim No : 253
    Download All filess

    Use case 8
    Bill with Individual NPI
    Patient is same as the Insurer (Self).
    Bill to Patient Primary Insurance.
    All Claim Level Date included :
    Date Onset (431), Date Initial Treatment (454), Date Last Seen (304), Date Acute Manifestation (453), Date Accident (439), Date Last Menstrual (484), Date Last X-Ray (455), Date Last Worked(297)
    No of Claims : 1
    Claim No : 254
    Download All files

     

    Use case 9
    Example for creating EDI for Secondary Insurance (Coordination of Benefits  COB Segments)
    Download All files

     

    Use case 10
    Example for creating EDI for Secondary Insurance (Coordination of Benefits  COB Segments)
    Download All files

     

    Use case 11
    Example for LOOP 2300 K3 Segment and CLIA Number
    Download All files

     

    Use case 12
    Example for creating EDI for Secondary Insurance for more than one line item (Coordination of Benefits  COB Segments)
    Download All files

     

    Use case 13
    Example for creating EDI for Tertiary (3nd) Insurance for more than one line item (Coordination of Benefits  COB Segments)
    Download All files

     

    Use case 14
    Bulk Volume Claims 20 Claims in one EDI File
    Download All files

     

    You can download all use cases as one zip file here

     

    Reference

    JSON to EDI 837 Professional
    https://emrpms.blogspot.com/2020/04/json-to-edi-837-p.html

    For more option, check our EDI Tool
    URL : https://demo.nagatabilling.com/NagataEDITool/login.zhtml
    User Name : demo
    password : demo



    Looking for best Practice Management software ? Please email at vbsenthilinnet@gmail.com 

    Questions or feedback are always welcome. You can email me at vbsenthilinnet@gmail.com

    EDI 5010 Documentation 837 Professional - Loop 1000B Receiver Name

    1000B – Receiver Name