Report Traces $200B in U.S. Health Costs To Claims Processing Errors

Insurers' failure to properly reimburse physicians costs the U.S. $200 billion annually, according to a report released Monday by the American Medical Association, the Los Angeles Times reports.

AMA released the report at its annual meeting in Chicago to coincide with the launch of its "Cure for Claims" initiative to reduce inefficiencies in payment claims (Girion, Los Angeles Times, 6/17).

Report Methodology

National Healthcare Exchange Services, a California-based claims processing firm, developed the report based on several criteria, including frequency of efficient payments, time taken to reimburse physicians and compliance to contracted rates (Johnson, AP/Hartford Courant, 6/16).

National Healthcare Exchange Services, a California-based claims processing firm, developed the report based on several criteria, including frequency of efficient payments, time taken to reimburse physicians and compliance to contracted rates (Johnson, AP/Hartford Courant, 6/16).

The company examined about three million medical claims that were submitted over a six-month period beginning in October 2007 (Los Angeles Times, 6/17). The report examined claims billed to Medicare and seven insurers:

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