New Jersey’s Signs EDI Law for Electronic Filing of Medical Bills for Worker’s Compensation Claims
The new law requires all Workers Compensation, Third Party Administrators and Employers who receive medical bills to accept the bills and their medical reports electronically. All healthcare Providers and Hospitals that submit over twenty-five (25) bills per month are also required to submit their bills and medical reports electronically. The Department of Banking and Insurance will utilize the national standard ASC X-12 electronic data exchange protocols found in all modern billing systems.
The benefit for healthcare providers managing their revenue cycles through e-billing, besides faster payment, is the increased efficiency of direct point to point communication between the insurance carrier and the Provider billing system. The elimination of lost bills and an overall reduction in administrative costs and burdens results in a more effective, efficient process. Providers currently submit over 95% of all Medicare, Medicaid and healthcare bills electronically yet submit only 10% of all Workers Compensation and Auto bills. Payors receive faster notification of claims through the e-billing process, more accurate and complete first-time bills and medical documents, better communication and a significant reduction in paper and mail room processing. These all lead to decreased costs and eliminate reliance on antiquated manual processing.
iHCFA, a New Jersey based clearinghouse and a business partner of Atlantic Imaging Group, specializes in electronically processing Workers Compensation and Automobile bills with all supporting documents. iHCFA is an industry leader with the ability to connect to any medical billing system and link to more than 1,000 insurance payors and third-party administrators in all 50 states. iHCFA users can access a web based system to perform bill validation, review processing status including acceptance or rejection and payment notifications.