Dave Minch of John Muir / Mt. Diablo Health System shares a Provider's
Perspective in a Q&A:

Q. What do you think about onerous EDI enrollment processes and
"certification"? Don't you want all these artificial barriers put up by
the payers removed?"

A: You can bet that I don't like it one bit. Remember, I have 16
different entities who send bills, and two entities who receive them.
Multiply 16 times the 500+ payers we correspond with and you can
understand the problem (technically, all entities don't deal with all of
the payers, but the subsets are large enough!).

Now the other side of my equation is that I receive claims (i & p) into
two of my entities (including receiving them from my own senders). As a
receiver, I have to ask myself, how much time do I want to spend dealing
with paper TPAs and cert testing before allowing a provider to send
x12s? The tradeoff is posting my CPP and letting claims flow in, and
reject any that aren't HIPAA compliant. Since my chosen software can do
a complete HIPAA check (similar to what our friends over at Claredi do),
I'm banking on the fact that i'll spend a whole lot less time in
auto-rejecting malformed batches/claims, and misdirected claims than if
I did the manual TPAs & testing. The one caveat is that i'd like to have
my TPs certify with an outside agency such as Claredi before they start
sending to me (less rejection processing if they get their act cleaned
up ahead of time). We should be able to incorporate a cert_id into the
CPP/A.

Q. Would you ever be sending claims to insurance companies you normally
never dealt with?

A: Most of our business is done under some sort of contract - where we
have agreed upon certain rate schedules and service lines in advance
with the health plan. We do also operate a regional trauma unit through
which we get patients from all over the US and abroad, and we do a lot
of billing to payers with whom we have no pre-existing relationship.

Q. Would you be doing this on behalf of the patient? - if so, would
payment usually go to the patient (on the assumption he paid you up
front)?

A: Technically, all billing done by us is on behalf of the patient.
Financial responsibility is the Guarantor's in ALL cases - even with
programs such as Medicare, Medicaid, and Champus. This is because the
Guarantor can always authorize procedures and other expenditures which
go beyond the care covered by any particular plan. We direct bill payers
as a service to the patient (and, of course, because the patient could
never figure out how to navigate the reimbursement waters by
themselves). It also assures us that we will get the bulk of our payment
in a somewhat timely manner.

If the patient or guarantor cannot provide us with a verifiable plan
prior to delivery of service, then we will bill the patient/guarantor
for charges. If they pay, then we are generally done with that account -
we would not bill after-the-fact on behalf of the patient. What does
happen is that the patient will pay some of the bill (or pay deductibles
which we later find have already been satisfied), and then present us
with a verifiable plan, where upon we will bill that plan (payable to
us) and refund any over-payment back to the patient.


I think Dave's answers kind of confirm that it is not just my
imagination when I reckon there will be (electronic) claims submitted to
insurance companies with whom a provider has no pre-existing
relationship.  That's key: that may never have been possible before
HIPAA - and also means the Healthcare Registry's support of Open-EDI (no
onerous manual EDI enrollment) is a critical success factor.

Compare that to what my "Deep Throat" Big Blue friend says about not
even allowing any electronic claims to come in from a provider whom he
has never heard of before.  Actually "Deep Throat" is not technically
with a Blue, but rather with a subsidiary of a Blue.  Well, okay.  And
technically, it's no big deal about his identity, either - he just can't
get e-mail posted to the mailing list for some obscure technical reason.
We will reveal more about "Deep Throat" in our next installment: "A
Payer's Perspective."

William J. Kammerer
Novannet, LLC.
Columbus, US-OH 43221-3859
+1 (614) 487-0320


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