| Claim Rejections |
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| Cost per Claim filed electronically is considerably lower than the cost of paper processing. The American Medical and Dental Associations report the cost of paper claims processing ranges from $6 to $12 per claim in labor and overhead. Electronic Claims Submission cost 20% to 60% less than paper claims processing. |
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| Rejected claims filed electronically are less than 1 % compared to 33 % for paper processing. In addition, 15% of all denied claims are never resubmitted. |
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| Electronic filing dramatically reduces the receipt of payment time to only 7 days compared to 180 days using paper filing. |
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| Growth Potential |
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| It is estimated that 500 million Health Plan Claims are filed each month, yielding 6 billion claims per year. Of all claims submitted 40% are filed electronically. About 60% are still filed manually on a paper form. |
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| The percentage of phycisians submitting claims electronically is likely to grow in the next few years as more health plans provide for electronic receipt of claims information or mandate through contractual agreements with physicians, the electronic submission of claims. |
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| HIPPA requirements mandates that claims should be filed electronically. |
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