Question

Discuss the advantages and disadvantages of paper vs electronic claims submission. Explain your answer.

Answer 1

PAPER CLAIM SUBMISSION:

In paper claim submission,the billers will have to enter the claim details in the forms provided by the insurance companies and send the complete details.

Advantages:

* Minimal start up cost

Patient doesn't need to spent so much money for starting the processes.

* Easily accessible forms

All the forms for this process are easily accessible

* Can easily attach other documents

It is easy to attach other documents which is needed for any reimbursement purpose in which is in paper format.

Disadvantages:

* Time consuming

It is very time consuming for processing the files

* Costly

Patient has to pay somuch money for printing, postage, delivery, stamp etc

* It will take 5- 7 weeks for the payment

* Security issues

It is not completely safe to use paper records for these kind of legal issue

* Prone to damage

Paper documents are easily prone to get damaged.

ELECTRONIC CLAIM SUBMISSION:

An electronic claim is a paperless patient claim form generated by computer software that is transmitted electronically over a telephone or computer connection to a health insurer or other third party payer for processing and payment.

Advantages:

* Time saving

The processing can be done faster

* Payment will be received within 2 weeks

* Less expensive

No need to spend money for any printing, delivery etc.

* No chance for errors

With the usage of electronic services there is no chance of errors.

* Tracking

Any time tracking of the claims progress is possible

Disadvantages:

* Computer and internet glitches

A sudden malfunctioning of the system can affect the process.

* High start up cost

In the beginning some expenses are there from cost of hardwares and medical billing software.

* Privacy issues

Privacy is not guaranteed. This is because people who process these can have access to all the details.