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Electronic Claims Software

Using electronic claims software for your electronic claims submissions does several things for your practice:
  • Makes billing simpler
  • Minimizes cash flow disruptions
  • Reduces claims rejections
  • Controls paper flow

Which electronic claims software is right for my practice? 

The decision to use electronic claims software is an easy one. You save time. You save money. The next step is to determine how to submit your electronic claims: through an electronic claims clearinghouse or directly to an insurance carrier. Lytec Medical provides electronic claims software for both methods. The method that you choose determines how electronic claims are sent to your insurance carriers.




Enrollment is first step to using electronic claims submissions

Whether you choose to go through a clearinghouse or to submit claims directly to the carrier, you will need to go through an enrollment process before submitting electronic claims. The enrollment process is required so that the company you are working with can be ready to receive and process information from you on their computer system. Most government and many commercial carriers require enrollment. Some also require that you sign a contract with them.

The enrollment process typically takes six to seven weeks to complete. The largest obstacle in getting set up for electronic claims submissions is getting approved by the state, federal and commercial/HMO carriers. The approval process is very time consuming — it can take up to six or seven weeks to get approved — so we encourage you to begin the enrollment process right away so you can enjoy the time and money savings of submitting your claims electronically.

Processing electronic claims through a clearinghouse

Working together with one of the largest clearinghouses in the United States, Lytec Medical has developed a seamless (built-in) system that allows your practice to submit all claims (all-payer solution) electronically and have your claims validated on-line (real-time). After subscribing to the clearinghouse and entering your billing information, a file is created that contains your claim information. The file is then transmitted to the clearinghouse using the built-in functionality contained in Lytec Medical. 

As the clearinghouse receives your claims, they are checked for completeness and accuracy. If you have made a mistake, you are notified as you complete your transmission to the clearinghouse. If you are notified that there is a problem with a claim, the claim information can quickly be repaired and resubmitted to the clearinghouse (eliminating the costly delay associated with an incorrectly submitted paper claim). Once submitted, your claims will be electronically forwarded (in most cases overnight) to your insurance carriers for reimbursement. Internal tests by the clearinghouse show that 98% of all claims that are properly submitted electronically through the clearinghouse are paid.



Processing electronic claims directly to the insurance carrier

Submitting claims directly to an insurance carrier is a little more complicated. As explained above, you must first enroll with the carrier. Most government carriers and many commercial carriers require that you enroll with them prior to submitting claims electronically to them. You will also need some additional software from each insurance carrier that you wish to submit claims to. Many carriers have their own software or know of someone who supports direct transmissions in your area. At 2K Medical Billing, we also work with many local business people who have created direct submission software modules. Please call us and we will be glad to help you find a solution.

The most common direct claims submission method creates a "print image" file of your insurance claims and then uses the direct claims software to send the claims to the insurance carrier. With Lytec Medical, printing claims to a file is as easy as printing your claims on paper. The first step is to set up a new printer in Windows that is designated as a "print to file" printer. After completing the printer setup and entering the billing information into Lytec Medical, you are ready to print your claims to the carrier transmission file.

Select the "Print Insurance Claims" option within Lytec medical and select the claims for your insurance carrier. Then, when prompted to select a printer to print your claims, you simply select the printer that has been set up to print to file. A prompt screen will appear requesting that you enter a filename. Enter the filename that was given to you by the direct claims software product. Then using the direct claims software, transmit the file to the carrier. Some of the carriers may "edit" your claims. You will need to work with your insurance carrier to determine how to identify and resubmit claims that are in error.

Is it better to process electronic claims through a clearinghouse or direct to the carrier?

Some of Lytec's customers have asked which method is better for them to use — through a clearinghouse or direct to the carrier. Here are several things to consider:

·         Direct to the carrier is probably the least expensive method if your practice primarily submits claims to only one carrier. However, if you submit claims to more than one carrier, it is probably not the least expensive method. READ ON.

·         With the clearinghouse, you only need to dial into one location. If you choose to go direct, you will need to dial into each carrier and/or send paper claims to the rest. With the clearinghouse, all claims can be submitted in one transmission. The ease of simply sending claims to one location cannot be underestimated. Submitting claims to multiple insurance carriers requires your staff to become experts in each of the claims submission modules that you use. Since each one is unique, someone must be adequately trained and available to submit your claims or your practice will not be reimbursed. Claims submission to a clearinghouse is all done through the Lytec software and almost anyone can do it by reading the user manual, using the help screens and/or calling our technical support line.

·         Customers cannot submit claims directly to NEIC or to the majority of individual commercial insurance carriers.

·         Most carriers that receive claims electronically cannot edit the claims online (meaning at the time that you actually are transmitting the claims to them). The clearinghouse can edit your claims for completeness and validity to reduce the possibility of a rejected claim at the same time that you are sending your files. You will be notified before you sign off if there are any problems with your claims.

·         Many carriers have designated only certain times when claims can be sent. The clearinghouse will accept claims whenever you are ready to send them.

·         Using the clearinghouse reduces your phone bill. Many carriers will require that you pay for the telephone expense for your claims transmissions. The clearinghouse supports a toll-free line for claims transmissions. Telephone expense is often overlooked when comparing direct transmission to a clearinghouse.

·         Updates to an insurance carrier's transmission software are free and transparent when using the clearinghouse. When using a direct submission module, updates must take place at the customer's site and often require a programmer's attention, which can be very costly.

·         With a clearinghouse, a single confirmation report is produced for all insurance carriers. Separate confirmation reports are produced for each carrier where claims are submitted directly.

·         Some insurance carriers require special communication equipment/software. The only piece of equipment that is required to submit claims to the clearinghouse is a standard PC modem.

·         The clearinghouse is a priority to the insurance carriers because of the claim volumes they submit.
Unless your practice submits insurance claims to only one carrier and you have a highly technical staff with little employee turnover, we recommend that your practice submit your claims to an electronic claims clearinghouse. If your practice submits claims primarily to one carrier, you are probably better off going direct to that carrier. If that is the case, please call us.

We work with many independent business people who have created direct insurance claim submission modules using our software. We work closely with these people and know which ones have created or support products that are compatible with Lytec Medical. We offer direct electronic billing modules for Medicare, Medi-Cal, Medicaid, Blue Cross, Blue Shield, and THIN (Texas Health Information Network).  Most of these modules work specifically in California; however, our Medicare module may work in your state.

Make the choice to submit your claims electronically now!

Whichever method you choose, it is a proven fact that your claims are processed much faster and your reimbursement time is shortened using electronic claims software. Lytec Medical makes submitting your claims electronically very easy. Hundreds of our customers do it every day using one of the two methods outlined above. If you are new to electronic claims, let our friendly customer support staff help you. We have trained professionals that will take you through the entire process, step by step. Start the process today to enjoy the benefits of submitting your claims electronically.

Electronic Claims Clearinghouse

A clearinghouse is a company that receives claims from many providers and specializes in "consolidating" those claims so that they can send one transmission to each carrier.

Direct to an Insurance Carrier

Submitting your claims directly to an insurance carrier means that you are dialing into the insurance carrier and sending your claims. This method involves creating a "print image" file of your insurance claims on your computer and then using a separate software package to send that file directly to the insurance carrier.