I'll start by simply sending our project requirements to provide a
framework, then follow it up over the next few days with specific scenarios
as requested by Rachel.

I'm guessing that our Health System doesn't qualify as a small provider as
Chris & William describe, in that we have adopted the strategy that we will
take full responsibility for formatting and batching X12 transactions (and
have acquired a product to assist us in doing so).  That being done, we will
then send them directly to payers, or their designates, for 70%-80% of the
claims.  The remaining 20%-30% will be routed to one or more clearing houses
which we will select via RFP (to be issued this spring).  So, our
requirements are fairly straight-forward, and I will state them relative to
the business process that they relate to:

Business Process: Registration / Admission - get insurance information
Requirement:      Recognizable code from card(s) or responsible
party(parties)
The key fields that most (all but 2) of our billing applications have room
to code are: payer id, plan id, group id, and member id, and a contact phone
number. Four of the applications have a space for address, but that appears
to be intended for postal address, so its of no help.

The "identification" we are looking for is to be able to take information
from the card and relate it to an address where we can check coverage &
co-payments. Today, that identification is a phone number which is often on
the card, but often not (in which case we look it up in our payer files
within the different applications). In the brave new world of EDI, i expect
the information to ultimately resolve to an address (and protocol) where I
can send an X12n-270 (real-time or batch).

Business Process: Registration / Admission - verify coverage & co-pay
Requirement:      Resolve card information to 270 address (or comparable
contact identifier)
I should note here that the 270IG on page 12 tells me pretty clearly that
the 2000A entity is where the message is to be sent to get the answers.
Figuring out what this entity is, however, is an interesting trick for
reasons noted by others in this listserv - a single payer can have a
multitude of other entities that are the brokers of this information.  With
no disrespect to Kepa's proposed DNS model (which i really do like), i'm not
so sure that the payers even know enough about their own plans to know who
to send eligibility inquiries to - at least our registration folks often
seem to "know" that for certain payers, they don't even bother to call the
payer's information number - they call the employer's HR department to get
the appropriate contact number. It seems to me that the entity that prints
the card is responsible for supplying the appropriate contact information on
the card (agree that bar code or mag stripe would be helpful additions, but
would, themselves, require more standards to be useful).

The need for a real-time verification varies between our providers - in most
non-emergent cases we need to know coverage before or concurrent with when
service is rendered. Once we establish coverage for a patient, that
information is saved in our various vendor applications for review/use
during the next encounter.

Business Process: Review & Authorization
Requirement:      <We have not examined this transaction yet - primarily
because our business office has indicated that whenever reviews or referral
requests are made, they must be accompanied by other clinical documentation
(i.e. physician's care plan / discharge summary / op notes, etc, depending
upon circumstance and payer or TPA), and consequently the transaction itself
sans the other documentation is of little value>.

Business Process: Billing - identify destination for the claim
Requirement:      Resolve original information received to an address where
the claim is to be sent.
Presently, we make some specific distinctions between Medicare, Medicaid,
and some health plans (hard-coded in some of the billing applications),
grouping them separately because they go electronically to different places
today. In the future, we would expect to resolve the identifier addresses to
physical destinations when the nightly "sweep" of our "ready to bill" claims
takes place, packaging all claims for a particular payer-destination (again,
for a single payer, the destinations can vary greatly depending on plan and
group).

We would certainly favor William Kammerer's simpler model of having the
payers give us one single address, and having them take on the burden of
appropriate routing, but as I said before, we have little confidence that
they even know the correct address themselves.

Business Process: Billing - verify receipt of the claim
Requirement:      Use standard X12n response (the 997) to verify that the
group of claims reached their intended target.
Requirement:      Verify that the end-point destination payer (the one who
is going to generate the RA) is in receipt of the claim.
If the X12n-997 only tells us that the "next-hop" receiver got the claims,
and we don't see other acknowledgements in the chain, i'm not clear how we
meet the second requirement short of the 276, and even that is problematic
as explained below.

Business Process: Timed follow-up on unresolved claims
Requirement:      Use standard X12n-276 sent to "last known" end-point.
The intention is to use a parameter in our A/R applications, which is set by
payer & plan, to trigger non-response follow-ups, much as we do manual phone
& letter follow-ups today.  The problem that needs to be resolved is where
the 276 is sent.  If the original endpoint for the transaction is not the
entity that actually cuts the check (a 3rd party administrator, for
example), we need some positive transaction from them that tells us the
claim has moved along to the next stop.  We find that out today when we call
and they tell us it was sent on to the payer. I assume that in the
electronic world we'll get either an unsolicited 835 or at least a 277?
That assumption in place, the 276 would always be sent to the original claim
destination unless advised otherwise by transaction or the trading partner
agreement.

Business Process: A/R - process unsolicited requests for information and
statuses from payers.
Requirement:      Receive electronic 277s and route to the appropriate
application internally for handling.
Note here that many of our smaller application vendors as yet have no clue
what the 277 is/does. Our initial thought is that we'll create an internal
email notification to most of our A/R depts. that can't handle electronic
277s with human-readable interpretation of the 277 information. It would be
much better, however, if we could somehow indicate to the senders when we
cannot accept certain transactions for certain entities.

Business Process: A/R - record payments to claims
Requirement:      Receive electronic 835, route it to the proper system
internally for posting.
Here, again, while we are making better progress with the application
vendors in this area, we do not expect all of them will be able to upload
835 information, and we will have to be able to print a human-readable
version of the transaction (and have acquired a program to do so).

Lastly, i'm somewhat concerned with the notion of disregarding the legacy
dial-up applications since i'm quite sure that batch submission through dial
access will continue to be a primary vehicle for submitting claims in at
least the near future.  Communications technology has far surpassed the
ability of most healthcare software vendors, and i don't see
bread-and-butted healthcare A/R applications moving rapidly into the
near-real time transaction space (you might guess that i'm underwhelmed thus
far in the responses from our various software vendors).


Dave Minch
T&CS Project Manager
John Muir / Mt. Diablo Health System
Walnut Creek, CA
(925) 941-2240

Reply via email to