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Overcoming Healthcare's Biggest Insurance Verification Challenges

Team Fuse
Team Fuse

Insurance verification errors are among the leading causes of denied claims, and they're costing both patients and healthcare organizations. Recent surveys suggest that more than half of healthcare revenue cycle leaders report an increase in claims denials, and roughly 68 percent attribute this to inaccurate or incomplete patient data during the intake and verification process. For larger organizations, those denials are costing $3 to $5 million in annual revenue, with practices spending at least $25 to rework a single denied claim.

As insurance plans become increasingly complex and payer rules evolve, the situation is only worsening. Yet, many practices still rely on outdated manual processes, and those workflows are failing healthcare providers. With many already facing slow operations, staff shortages and shrinking margins, clunky verification processes can snowball into substantial financial and operational problems.

Let's explore those insurance verification challenges further and dive into solutions that can streamline the process, leading to more accuracy, faster reimbursements and stronger cash flow for your practice.

The Most Common Patient Insurance Coverage Challenges

Manual verification is both labor- and time-intensive. The average medical practice spends nearly 13 minutes with manual benefits verification, if not longer. For a practice that handles 30 patients a day, that's over six hours of manual work. It's a significant staff resource drain, but that's not all.

With manual work comes the potential for human error and concerns about accuracy. Research indicates that error rates for manual workflows during medical coverage verification are roughly 27 percent. When those mistakes occur, staff need to spend even more time correcting them, effectively doubling or tripling the amount of time spent on a single patient's medical insurance verification.

As you can imagine, all that time and effort add up, creating bottlenecks that increase patient wait times and staff frustration. It's a vicious cycle with ripple effects that impact your team, your patients and your bottom line.

Why Insurance Verification Challenges Are Getting Worse

Insurance verification challenges are becoming a tougher mountain to climb for practices like yours. The growing complexity of modern healthcare isn't making things easier. Plans are more nuanced than ever before, and frequent policy changes are making it more difficult for administrators to keep up. Pair all that with narrow network tiers and the need for patients to have multiple forms of coverage, and it becomes increasingly difficult to streamline benefits verification while maintaining manual workflows.

It's not just practices and healthcare organizations that struggle to navigate today's insurance landscape. About 36 percent of insured adults struggle to understand what their own policies do and don't cover.

Those challenges continue to compound, complicating the process from the start. Furthermore, each layer of complexity increases the risk of error, leading to more denials, slower payments and more administrative costs. There are more puzzle pieces than ever, and old-school manual approaches no longer suffice.

Financial Impact of Poor Benefits Verification

The ideal insurance denial rate for hospitals and practices is 5-10%. Yet surveys show that actual denial rates are above 15 percent. Claims adjudication costs healthcare providers a staggering $25.7 billion annually, with an estimated $18 billion of that figure wasted due to reworks and re-submissions.

Administrative costs associated with denied claims exceed $57 per claim, with some hospitals incurring expenses of up to $181 to rework them.

Because medical coverage verification lies at the front of the process, failures during that crucial step cost practices downstream. Even the simplest mistakes can create benefits verification issues that tie up resources and drain cash flow. Every mistake during verification can result in greater delays for accounts receivable, increase administrative overhead and strangle overall practice efficiency.

How Medical Coverage Verification Errors Affect Cash Flow

Verification errors often trigger a domino effect on practice operations, ultimately impacting patient satisfaction. A single mistake during those eligibility checks can delay claims submissions, pushing back reimbursement by several weeks or months, stretching accounts receivable while also increasing staff burden. Those mistakes force staff to spend time identifying and correcting errors before resubmitting claims, calling payers and more.

While one error might not seem like a huge deal, multiple errors accumulate, reducing cash flow predictability and preventing practices from investing in growth. 

Meanwhile, those delays affect patients. Unexpected bills, delayed services and other issues erode trust. Additionally, the decreased operational efficiency of your practice can result in lengthy wait times, excessive paperwork and an overall unsatisfactory experience.

The Hidden Costs of Manual Verification Processes

Many practices view manual medical coverage verification as inherently more cost-effective. Why pay for automated benefits verification tools when you could just have your staff do it all? The truth is that there are several hidden costs to manual verification.

As mentioned earlier, staff can spend well over six hours daily verifying insurance eligibility when using manual workflows. For larger practices and healthcare organizations, it can take even longer. The staff costs alone are substantial. When you factor in the time and effort involved to rework claims, hidden costs increase. Those hours spent calling payers, identifying errors and resubmitting claims add up, costing practices $25 to $118 per reworked claim.

Manual insurance verification comes with many upfront and hidden costs that can be difficult to quantify. However, they're not insignificant. Compare that with more efficient coverage verification software, and the difference is night and day. Automated insurance verification can reduce the average timeline from 13 minutes to just 30 seconds. Furthermore, automated software dramatically reduces the risk of error, virtually eliminating the time and costs of reworking denied claims. 

Practices that switch to insurance verification software can see a return on that investment in just a few months, with measurable financial gains over the long haul.

Proven Solutions to Streamline Your Benefits Workflow

Modern solutions are turning the tide for practices of all sizes. Technology is changing the way that practices approach benefits verification. Automated software eliminates the need for hours of manual work, instantly checking eligibility, benefits, prior authorization requirements and more.

Coverage verification software takes only a fraction of the time required for manual processes while also preventing errors that can ultimately lead to denied claims. They can streamline the process from start to finish, and well-trained staff can leverage the technology to work more efficiently while delivering a better patient experience.

Implementing Automated Benefits Verification Systems

Automated tools perform real-time eligibility checks while seamlessly integrating with your existing systems. These systems reduce the need for manual entry, significantly decreasing the risk for errors and cutting back the time staff spend calling payers or looking up data in portals. Integration with your existing EHR and practice management systems further streamlines workflows, ensuring data flows into scheduling and billing without issue.

From an efficiency standpoint, automated benefits verification platforms can transform your practice. With less time spent on manual processes or correcting errors, these systems reduce administrative burden. Your practice can benefit from faster claim submissions, far fewer denials and more predictable cash flow.

Choosing the Right Coverage Verification Software

There are many options available for healthcare practices, but they're not all created equal. Here are a few key features to look for in a coverage verification software:

Integration Capabilities: Your real-time benefits verification software should work with existing systems. The best options won't require additional software or require switching EHR systems.

User Friendliness: An intuitive platform will ensure staff adoption and simplify training requirements, ensuring your entire team can leverage the software's capabilities.

Scalability: The best software will offer full scalability, growing with your practice as your needs evolve.

Comprehensive Reporting: Platforms should provide all the information about patient insurance coverage your practice needs, including verification at the CPT level.

Best Practices

Smooth, error-free insurance verification requires consistent workflows. Train staff to maximize the benefits of coverage verification software, establishing well-defined processes that everyone can follow. Avoid assigning verification duties to a single person. Having multiple staff members capable of performing verification can optimize efficiency across the board. Assign clear responsibilities and utilize standardized checklists that your team can follow consistently for every patient.

To avoid surprises, verify insurance coverage before every patient visit and update the data with each subsequent visit. For more complex scenarios, such as dual coverage, pending authorizations or sudden policy changes, create a clear escalation path that your staff can follow. Doing so will reduce errors and accelerate claims submission, allowing your staff to spend more time focusing on patient care and less time wasting resources. 

Transform Your Practice Today!

Ready to transform your practice with automated benefits verification? Fuse is an end-to-end solution that can dramatically reduce errors, denials and reimbursement delays. Get real-time verification of a patient's benefits, without calling payers or using their portal. Fuse does it all for you, reducing the time administrative teams spend on verification by up to 95 percent.

With seamless adaptability that caters to your practice's workflows, implementing Fuse is easier than you might think. Most practices transition to Fuse in just a few days. Schedule your Fuse demo today to say goodbye to insurance verification challenges that negatively impact your practice.

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FAQs

What are the biggest coverage verification challenges healthcare providers face?

The biggest challenge most practices face is an increasingly complex insurance landscape. With plans becoming increasingly complicated due to evolving policies and many patients relying on layered coverage, traditional manual verification often leads to errors that result in denials, delays and cash flow problems.

How long should the benefits verification process take?

Ideally, insurance verification should take no more than a few minutes. However, manual workflows result in processes taking 13 or more steps.

What happens if patient insurance coverage is verified incorrectly?

Mistakes during the verification process can lead to headaches for patients and practices. Most errors will result in denied claims, which can lead to delayed reimbursements that practices must rework. They snowball into added costs and a frustrating experience for patients.

How can automated verification software reduce claim denials?

Automated insurance verification can reduce administrative timelines by up to 95 percent. They also free up staff resources and reduce errors. Over time, automated software with real-time benefits verification can pave the way to more predictable cash flow and substantial cost savings for practices.

When should practices verify patient insurance coverage?

Practices should verify a patient's insurance coverage before their first visit. It's also crucial to update information regularly, especially when policies or payers change.

Questions?

If you're a patient seeking clarity on the cost of care, a provider looking to automate practice admin and offer transparent billing, or looking to see how your rates compare with peers, we're here to help.
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