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AMA annual insurer report card adds measure of administrative burden in the medical claims process
e-Reports, July 8, 2013
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Your medical practice and others across Indiana and the nation must work through a “maze of complex insurer rules” and administrative tasks that could save the industry up to $12 billion if reduced or removed, says the AMA.

In recent years, the organization has released its annual National Health Insurer Report Card as a way to lead the charge against administrative waste and advocate for improving health care billing and payment systems.

This year, for the first time, the AMA also examined the portion of health care expenses patients are responsible for through co-pays, deductibles and co-insurance. During February and March of this year, patients paid an average 23.6 percent of the amount health insurers set for paying physicians.

“The AMA is calling on insurers to provide physicians with better tools that can automatically determine a patient’s payment responsibility prior to treatment,” said AMA Board Member Barbara L. McAneny, M.D. 

Find the full Report Card here.

About the administrative burden
The AMA’s new Administrative Burden Index (ABI) ranks commercial health insurers according to the level of unnecessary cost they contribute to the billing and payment of medical claims. The AMA found that administrative tasks associated with avoidable errors, inefficiency and waste in the medical claims process resulted in an average ABI cost per claim of $2.36 for physicians and insurers.

Estimates indicate $12 billion a year could be saved if insurers eliminated unnecessary administrative tasks with automated systems for processing and paying medical claims. This savings represents 21 percent of total administrative costs you and all physicians spend to ensure accurate payments from insurers.

See the full ABI here.

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