$8 Billion Annual Savings Opportunity for U.S. Healthcare With Adoption of Electronic Business Transactions

The Firm Services let us handle your Insurance, Credentialing and Re-validation Issues 2014 CAQH Index Shows Progress, Gaps in Switch from Manual to Electronic WASHINGTON, DC – Mar. 17, 2015 – U.S. healthcare could save $8 billion annually by transitioning six routine business transactions from manual to electronic, according to the newly published 2014 CAQH Index™. The CAQH Index tracks progress from manual (e.g., via phone, fax or mail) to industry standardized (HIPAA) electronic administrative transactions between health plans and healthcare providers. This annual report, the second from CAQH, details adoption rates and potential savings. "Hospitals should be focusing on patients, not paperwork. By expanding automated electronic communications between providers and health plans, we can reduce health care costs, ease administrative burdens, and ensure that key stakeholders in our health care system communicate with each other more effectively," says Joel Perlman, Executive Vice President, Finance, and Chief Financial Officer, Montefiore Medical Center. Based on data from 2013, the 2014 CAQH Index represents a collaboration between healthcare providers and health plans. Data submitted includes administrative transactions and cost estimates for analysis. The report reflects data from participating health plans representing 112 million enrollees – almost 45 percent of the privately insured U.S. population – on more than four billion transactions. In addition, a range of healthcare facilities and provider practices participated in a data collection process conducted on behalf of CAQH by Milliman, Inc. Both this and the prior year’s CAQH Index studied six transactions -- claim submission, eligibility and benefit verification, prior authorization, claim status inquiries, claim payment, and remittance advice transactions. This enabled year-over-year comparisons between health plans providing data counts for both reports. CAQH also measured two transactions for the first [...]