Humana's Real-time Commitment
to Administrative Simplification

Dear Physician and Office Staff:

Administrative complexity around billing and payment processes is of growing concern to most physician office practices today.* In fact, the Medical Group Management Association (MGMA) estimates that billing complexities can cost a small physician group nearly $60,000 a year. Humana is keenly aware of the cost of complexities in the health care industry. Consistent with our goal to be the easiest health plan with which to do business, Humana has launched a number of administrative simplification initiatives dedicated to creating innovative solutions and cost savings for providers. Below are some highlights of just a few of these initiatives.

Real-time claims adjudication (RTCA) — Simplified administrative solution enables a fully adjudicated claim at time of service
In a recent issue of the magazine, we informed you of the expected launch of an integrated real-time claims adjudication process that would simplify administrative tasks and help physicians obtain payment for services from patients more quickly. This solution comes as high-deductible health plans (HDHPs) continue to gain popularity with employers. Throughout 2006, Humana will roll out real-time claims adjudication across the country.

Expansion of Availity Services
The goal of Availity, formed in 2001, as a joint venture between Humana and BlueCross® BlueShield® (BCBS) of Florida, is to optimize the flow of transactions between health care professionals, health care plans and other stakeholders through a secure, collaborative Internet-based exchange. Many of these services are at no charge to the provider. The outcome is a reduction of costs in the health care marketplace and simplification of provider administrative work flow.

Availity Care Profile, A payer-based health record
Humana and BCBS of Florida recently announced plans to launch Availity Care Profile, a payer-based electronic health record, in 2006. A payer-based health record, maintained by health plans, is an electronic record containing claim-based information routinely collected from physicians, pharmacies and other health care providers. This electronic record provides a consolidated view of patients’ health care services across physicians and providers, as well as other health plans, helping improve patient safety and eliminating duplicate procedures.

In addition to these administrative simplification initiatives, we are collaborating with several national groups that are focused on addressing complexities and finding solutions like industry standardization. We look forward to enhancing our current solutions and sharing more solutions with you in the future.

Sincerely,


Bruce Perkins
Senior Vice President,
National Contracting

*According to a recent study cited on the Medical Group Management Association (MGMA) Web site

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