What is medical claims denial management in health insurance?

1
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On denial management

Typically, denied and rejected healthcare insurance claims quickly surface as a source of multi-millions of dollars  in revenue leakage and unnecessary expense for doctors, clinics and hospitals, etc.

  • But what is it, really?
  • How does it work?
  • Is it effective?
  • What are the alternatives?


Any other thoughts?

Denial Management
Utilization Review
Managed Care
Dr. David E. M
64 months ago

2 answers

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As vexing as claims denials can be, they're always going to be an issue in fee-for-service medicine. Health insurers have a duty to their shareholders to minimize claims errors, and it's in their interests to avoid paying out moneys they don't truly owe.

To protect themselves, providers need to have robust denials management processes in place. Denials management teams should include experienced medical coders, practice/hospital managers and ideally one or more providers.

Though these processes vary from institution to institution and practice to practice, generally speaking the key aspects of such programs include a) promoting the use of appropriate codes through coaching and continuing coding education sessions, b) tracking denied claims to discover patterns which can be addressed and c) creating protocols for working with health insurers.

How effective these efforts are depends on how prepared the participants are to examine their work habits,, how capable healthcare organizations are of changing flawed processes and how willing the organization is to invest in hiring, training and continuing to educate coders.

Anne Zieger
64 months ago
UM and CM etc; also leads to covert rationing; no? - Dr. David E. 64 months ago
I have no problem with health plans making a good-faith effort to verify the validity of claims. However, as the Forbes link illustrates, the health plans often don't play the game fairly. In fact, one could argue that they have a fiduciary duty to deny as many claims as possible. - Anne 64 months ago
Good Faith for you - I rather trust but verify for me, my family and patients. - Dr. David E. 64 months ago
I don't believe for one minute that the health plans are operating in good faith. I'm just observing that if they *did* operate in good faith, the mere fact that they verify claims wouldn't bother me. On the other hand, I believe in single-payer healthcare ardently and see health plans as parasites. - Anne 64 months ago
I worked, lived, studied, operated, taught medicine and lived in Europe. - Dr. David E. 64 months ago
National Healthcare - Go for it - More of the same; http://www.msn.com/en-us/news/us/va-seeks-to-redirect-billions-of-dollars-into-private-care/ar-BBS9suJ?li=BBnbfcL - Dr. David E. 64 months ago
Having practiced in Europe, I assume you worked under a nationalized healthcare scheme. Where did you live, how was care financing and delivery structured and what did you think of the results? - Anne 64 months ago
See SUCKS below - Dr. David E. 63 months ago
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SUCKS -

I did "pro bono care" and gave the national payments back to the hospital. But, I made, and stil make, money teaching nationalized docs how to run a private medical practice in their off time. It subsidizes their nationalized payments and is exploding in Finland, Germany, UK and Sweden. Legal and governmental encouraged capitalism, too!

PS: You generally can't sue a socialized doctor; but may sue the private practitioners. IRONY

Dr. David E. M
64 months ago

Have some input?