Insurance companies are getting a bit better when it comes to processing claims, according to the American Medical Association’s newest report card. The country’s seven largest insurers are paying out the wrong amount to doctors and other providers only 9.5% of the time so far in 2012, compared to 19.3% in 2011 and 20% in 2010.
The results were part of the AMA’s fifth annual National Health Insurer Report Card, which measures timelines, transparency and accuracies of 1.1 million medical claims.
According to the AMA, the improvement has managed to save health systems around $8 billion by eliminating costly administrative work. There are still enough errors to hurt the industry, as $7 billion was leaked in claims errors, reports the Chicago Tribune.
This is all good for you, because it means doctors don’t have to waste as much time on paperwork and can spend more taking care of patients, says the AMA.
“Paying medical claims accurately the first time is good business practice for insurance companies that saves precious health care dollars and frees physicians from needless administrative tasks that take time away from patient care,” said Dr. Robert M. Wah, the association’s board chairman.
1 in 10 health insurance claims processed improperly [Chicago Tribune]