EDI is a short abbreviation for Electronic Data Interchange. EDI is an organized way to transmit data between computer systems, every EDI document is created with a standardize format. Ensuring that all data is organized and can be quickly sent, as well as understood between both parties in the medical and dental industry. EDI is so efficient it has been proven to save time and money in the health field. When providers are utilizing …show more content…
They specialize in different definitions such as HCPCS as well as codes on dental procedures, they run it all. HIPAA’s administrative simplification also has made many operational improvements between provider and payers in ways such as, enhanced security and privacy, lower cost in claims processing,fewer claim denials, fast and accurate auto post payments.Now the electronic transactions that are under HIPAA are as follows eligibility and claim status, referral certification, payments. Other HIPAA compliant EDI benefits to consider is that the information that is provided from the provider, is stored and can be used to submit electronic claims to a secondary payer. With EDI healthcare providers can choose to manage EDI internally or externally with their own resources if they are trying to avoid HIPAA standard implementation guides. Even though EDI tech vendors and clearinghouses are supposed to implement HIPAA guides, managing EDI in house can have an effect on funds which gives the provider more control on the whole …show more content…
One of the reasons why EDI has become really important with insurance claim documentation is the proof of increase in efficiency notarized with the use of electronic attachments. To go more in more depth, electronic attachments streamline the process but CMS and commercial payers are required medical documentation for a specific procedure or event. However providers can submit claims directly to third parties if the third party but only if their software has been upgraded to comply with EDI standards. With this type of approach this helps the provider maintain allot of the control over the claims submission and payment process all to have a more sophisticated information system. With reimbursements and transactions the administrative simplification Compliance Act also know as ASCA requires that claims be sent to medicare electronically for payment because EDI support Medicare contractors. Although there are always other options of opportunities on technology, HIPAA & EDI transactions and code sets has shown more improvement since it all started in late