MedSynergies’ IncomeRx Service Helping Physicians Deal with HIPAA Transaction Problems; Notes Reasons for Rejected Claim

October 1, 2003

Dallas-based MedSynergies’ IncomeRx(TM) service is providing physicians with a detailed analysis of rejected medical claims – a capability that can help practices cope with the Oct. 16 deadline for adopting new electronic transmission standards.

Many physicians are reportedly concerned they will see an increased number of rejected claims after the new HIPAA transaction rules go into effect. IncomeRx can analyze a large group of rejected claims in seconds and sort-out which payers are rejecting claims and for what reason.

“The new electronic standards require practices to submit data in a format that they have not been previously required to use. Without billing analysis software, practices are operating in the dark when filing claims. They may be making a very simple mistake, and not realizing it. When you know why your claim was rejected, you can move promptly to correct the error and resubmit it, rather than waiting weeks for the payer to return the claim,” said John Thomas, CEO of MedSynergies.

The new HIPAA electronic formats, scheduled to take effect Oct. 16, require physician practices to submit claims in the X12 837-code set. Until recently, there have been a wide set of standards in use. Some payers, including many health insurers and the federal Center for Medicare Services, have reportedly said they will allow noncompliant claims to be submitted for a limited time after the deadline, but it is unclear how long the grace period will last.

A new white paper on HIPAA technology requirements is available at the MedSynergies’ home page,

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