The Importance of Reducing Medical Billing Errors

The Importance of Reducing Medical Billing Errors

Reducing Medical Billing ErrorsHealthcare centers are consistently improvising their medical billing system to ensure a smooth revenue cycle. The slightest error in a filed claim can cost the employer thousands of dollars. The most experienced billing service providers make sure that common medical billing errors never happen with either minimum or no rejected & denied claims:

What is the difference between a rejected and denied claim?

Denied Claim

A denied claim refers to the unpayable amount by the insurance company. In the most common cases, the insurance company clearly provides the Explanation of Benefits (EOBs). Such denied claims are a result of misinformation, common billing mistakes or the restricted insurance-based benefits available to the patient. A denied claim can be reprocessed or appealed for again.

Rejected Claim

Rejected claims are subject to billing errors.  The insurance company rejects a claim because of incorrect information about the patient or insurance plan provided by the medical billing specialists. A rejected claim is reconsidered only when a new claim is submitted with the amendments.

What causes medical billing errors?

Overlooking an important piece of information while filing a claim is a common problem. In a majority of the cases, the identified mistakes on the part of the coding specialists are mostly the same. Here are a few billing mistakes that need to be monitored carefully:

  • Adding incorrect details of the provider (name spellings, contact or address)
  • Adding incorrect details of the patient (sex, name, insurance ID, personal information etc)
  • Adding incorrect details of the insurance company
  • Entering a mismatching code such as ICD-9-CM codes
  • Missing digits of diagnostic codes
  • Misinformation of the healthcare official or physician in charge

How to avoid billing errors?

  1.    Verify every claim

Double Check all the way. This is the something that needs to be done every single time. Ensure that these minor errors are fixed prior to being submitted. In the long run, this one habit could save you twice the amount of work.

  1.    Learn the coding

Keep yourself up to date. Be learned about all types of specialties and medical practices to correctly code the claims. This increases your processing speed and the efficiency in coding to the specificity.

  1.    Monitor the changes in law

While you have all your focus on learning the clinic based regulations, spare some time to monitor the updates in the healthcare laws. Ensure that your billing practice is aligned with the latest changes in legal regulations.


Medical billing is a job of sensitive nature, as it puts the treatment of the patient and the financial benefits of the healthcare organization at stake. Regardless of how heedful you are while filing a claim, to err is common.

The best way to avoid billing mistakes is by verifying the electronic and manual information before processing the request.  Keeping yourself up to date with the latest coding trends and law regulations helps you minimize such mistakes. To secure the services of experts in the medical billing field, visit for hassle-free medical billing.

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