Artificial Intelligence (AI) is revolutionizing the insurance industry, especially in the area of claims processing. There are a lot of long-standing inefficiencies in the traditional method of handling insurance claims. Many claims get denied due to human error and inefficient processes, which lead to significant financial losses. The total amount of health insurance claims that are denied each year is staggering—$262 billion. Of those denials, $71 billion are attributable to mistakes made during the initial insurance card capture phase.
There are several issues that contribute to the current insurance processing system’s complexity. Errors are caused by the reliance on humans to identify crucial patient information and the complex requirements needed to locate payers. This human error results in a 19.3% error rate when reporting healthcare insurance. The inefficiencies are further exacerbated by the fact that traditional OCR software has trouble processing digital insurance cards and non-card-based insurance information.
Artificial intelligence (AI) is emerging as a game-changing option. AI-powered systems can validate insurance information quickly—less than five seconds—a significant improvement over the five to fifteen minutes needed for manual processing. The ability of AI to accurately detect important information like insurance type and claims PayerID opens the door to significant cost savings. Insurance card information collecting systems driven by AI have the potential to save $25 for each error that is not committed.
Source: OrbitHC