The federal Centers for Medicare & Medicaid Services (CMS) reports that a hospital’s administrative staff spends 28 percent of their time manually processing paperwork. In response to this report, a new rule issued by the federal Department of Health and Human Services (HHS) will simplify the healthcare claims process by requiring electronic methods. [1]
The CMS now requires that medical practices adopt electronic funds transfer (EFT) and electronic remittance advice (ERA). All practices must comply by January 1, 2014.
Over the next 5 years, the Affordable Care Act requires the federal government, through HHS, to issue a series of regulations that will help medical administrative departments work more efficiently and simplify healthcare transactions.
Thomas W. Rubino, director and public affairs and advertising for Blue Cross Blue Shield of New Jersey, said that electronic claims payments save time and money because there’s no need to mail out a check. He added that the new rules are simply an expansion of a more cost-effective and efficient system.
The shift to electronic claims processing will result in savings by reducing paper, printing, postage, processing, and time spent depositing checks. CMS reports that when health plans and physician practices implement its regulations, the industry should save between $300 million and $3.3 billion over the next decade.
[1] Vecchione, Anthony. “New Rules for Electronic Funds Transfers Should Speed Processing of Healthcare Claims.” NJ Spotlight. Web. 14 August 2012
