An Interesting Posting re: Clearinghouses somehow found its way onto the
XML-EDI Group mailing list on 10 Jan 2002, at
http://www.mail-archive.com/xmledi-group%40disa.org/msg01409.html.

   ...Today we are a company that processes 5 million claims
   with only about 10% electronic. Obviously we want to move
   to electronic submissions and in fact not only submissions
   but document exchange such as rosters, panels, remits, etc.

   Currently we are working with WebMD and other
   clearinghouses to capture the claims. However it is
   expensive somewhere from .29-.35 cents a transaction. So I
   am looking for  realistic and cheaper alternatives. In
   addition, since WebMD performs editing we have no
   visibility to "dropped" transaction and this is an
   irritant to our providers.

   Ideally we would like to go direct and implement out own
   transaction engine or something  similar. I have been told
   that providers only like to have one connection (that
   being a clearinghouse) and that they will not switch.

   So my question is --- IS that TRUE in your estimation.
   If so, what incentives have you seen used to go direct.
   And finally, what tools would you recommend. We are
   looking at bTrade, Cyclone Commerce and IP-Net. Because
   of the logging, mailboxing and non-repudiation, these seem
   to be a good fit with HIPPA but they too are very expensive
   and we would like to know if there are other alternatives.

It sounds like the writer is with a claims processor.  What's the
difference between a claims processor and a Clearinghouse? Why would a
provider have to hook up to both him and a clearinghouse?  Wouldn't he
already be the provider's intermediary?  - in other words, I can see him
hooking up with multiple CHs, but wouldn't a provider only have to link
up with the claims processor?

William J. Kammerer
Novannet, LLC.


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