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Adjudication Process

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Adjudication Process
Tamara Hurley
HCR/230
February 19th, 2014
Jill Frawley

Adjudication Process

There are five steps in the claims adjudication process. Each of these five steps serves the purpose of making sure that a claim is processed properly without any mistakes. Step one is the initial process, in this step most of the simple errors are fixed or caught. Some examples would be the patients name, the diagnose code may not match up with the date of service, or even have the wrong plan identification number. A claim with even one mistake will be rejected, this means that the claim will be sent back to the provider to correct the errors and resubmit the claim. The next step would be the automated review. Here a claim is reviewed for time limits of the claims filed, the benefits that the patient would be eligible for, referral forms, and if they received preauthorization for services. At this stage the claim is also checked for non-covered services, duplicate dates for services, utilization and medical review. If there are problems found in this step than the process on the claim is stopped until it can be reviewed manually. Any information still needed is requested during this review, this will ensure that the claim can be processed. When every mistake or problem has been fixed and handled than the claim will enter the determination process. The determination of if the claim will denied, paid, or have the payment reduced. After all of this than the claim will be paid, if that’s what was decided. The payment and an explanation of the choices made for it will be sent to the provider. The reason that the adjudication process is necessary is to ensure that the claim will be processed without mistakes or issues.

References

Valerius, J., Bayes, N., Newby, C., & Blochowiak, J. (2014). Medical insurance: An integrated claims process approach (6th ed.). Boston, MA: McGraw-Hill.

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