If I've read providers, like Mimi Hart, correctly, they would indeed
like to send electronic transactions to payers, even those with whom
they do not "participate."  It's generally the payers who are resistant
to taking in transactions from out-of-network providers - or at least
providers who haven't been "enrolled." Providers, especially hospitals,
take in out-of-network patients all the time.  Today, I assume that
telephone calls, faxes and mail are the norm to determine "will I get
paid?"   The "vision" is that HIPAA standard electronic transactions
will be the norm tomorrow.

The issue of trust in cyberspace goes both ways:  not only does the
payer need to "trust" the provider, but the provider also needs to
"trust" the payer. The payer wants to make sure that a transaction
really came from the provider it purports to have come from, and - at
the very least - that he provides services which make sense in the
context of the claim (via certificates and Provider Taxonomy Codes);
this the Healthcare CPP Registry and other technology can solve.  The
issue of whether the provider actually saw the patient, or really
rendered the services stated, exists whether the claim is paper or
electronic.

On the other hand, the provider wants to make sure the eligibility
inquiry goes to the real payer, and that the answers come back from the
same place;  we can solve this problem. The issue of payer viability -
if that's what the provider is worried about - exists whether the
eligibility response comes back on fax, phone or electronically.  If
it's a worrisome concern, go to A.M. Best for the answer.

Obviously (or hopefully) a provider will not cut into a patient until
the proper referrals are in hand; whether this can be done practically
with the 278 is beyond me.  Regardless, if standard transactions are
available to the provider for communicating with the payer, why wouldn't
he prefer to use them rather than the smile-and-dial rigmarole?

Even payers are champing at the bit, wanting to conduct eligibility
inquiries electronically with out-of-network or non-participating
providers;  take a look at the posting on the Transactions listserve
entitled "Re: Question: Rejecting a transaction" (28 Aug 2001) at
http://www.mail-archive.com/[email protected]/msg00075.html.  In it
Don Bechtel answers Jim Griffin, a payer, who really, really wants to do
270/271s with out-of-network providers, but at the same time wants to
make sure he can reject providers whom he suspects of fraud:

   "We are a national payer with contracted providers in every
   state, but only 50% or 60%/40% of our claims volume is with
   PPO providers, the rest is with providers where we have no
   agreements. Therefore the ability to perform a 270/271 is a
   great benefit for us, however the ability to reject such
   requests is also a business need. Similar situations could
   also exist with a claims status transaction."

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

----- Original Message -----
From: "Rachel Foerster" <[EMAIL PROTECTED]>
To: "'WEDi/SNIP ID & Routing'" <[EMAIL PROTECTED]>
Sent: Sunday, 30 June, 2002 11:59 AM
Subject: RE: Non-participating/out of network providers

I'm not so sure that the issues of trust, a standard claim format, or
anything other than will I/when will I get paid, is the major reason why
a provider would not be willing to send a claim to a payer with which it
does not participate. As for major procedures, such as cardiac
procedures, services from a specialist, etc., I can't imagine any of
these being performed by a provider without all of the appropriate
referrals/authorizations, etc.

Thus, the obstacle is not a technical one, but a financial one: if the
provider is not participating in a given payer's network, then the
concern is one of payment for health care services rendered, not what
clearinghouse, what claim format, or what payer id to use. Therefore, if
this is the typical case rather than a technical barrier, I would
suggest that it might be worthwhile to move on to identifying other
requirements/issues that would be within the realm of solution by an
automated health care registry.

Rachel Foerster



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