Tuesday, 23 February 2016

Electronic Data Interchange(EDI):
What is EDI??
   Business processes in a large variety of industries are becoming increasingly digitized. In the new era of the paperless office, it is not uncommon for all kinds of data to be transferred electronically rather than on paper. The healthcare industry is no exception, and electronic attachments for insurance claims are just one type of EDI in healthcare. But what is EDI? Electronic data interchange is more than just email; it is a structured way to transmit data between computer systems, governed by standards that are extremely important for medical claims.
Organizing and sending data between parties in the medical and dental industries has always been a complicated process, particularly in the management of both patient medical records and health insurance reimbursement details. However, thanks to increases in efficiency, EDI implementation has proven to both save time and save money. An important element in EDI is that of standards. Each EDI document has a standardized format, which ensures that data can be quickly sent and interpreted on both sides. It is particularly important that providers and payers utilizing healthcare EDI transactions follow HIPAA regulations and ANSI standards. EDI formatting specifications are like blueprints for data, EDI guides that serve to make transitions between different data trading partners as smooth as possible.
The reason that EDI has become especially important with respect to insurance claim documentation is the proven increase in efficiency seen with the use of electronic attachments. Not only do electronic attachments streamline the process, but CMS and commercial payers also require medical necessity documentation for certain procedures or events. When supporting documentation is included along with an initial electronic claims submission, both providers and payers can see the benefits, such as fewer denials and rework requests and an increase in ROI. In fact, even though attachments only represent a small part of the electronic claims process (perhaps 10% of claims); they have been shown to have a significant impact on the speed of insurance reimbursement.
Why EDI??
 Eliminating Paperwork
                               
A Decades-Old Quest

– 1950s First Steps

– 1960s Tape-based standards

– 1970s Industry-Specific Standards

– 1980 Cross-Industry Standards

– 1990s EDI evolves into EC

– 2000s Stay Tuned!

Electronic Data Interchange:

– The exchange of computer-processable data in a standardized format between two enterprises.

• Electronic Commerce:

– Any use of a variety of technologies that eliminate paper and substitute electronic alternatives for data collection and exchange. Options include Interactive Voice Response, Fax, Email, Imaging, Swipe Cards and multiple Web-based Internet tools.

EDI and EC: A Place for Both

EDI

–     Standards-based data exchange - the foundation of quality transaction processing.

–     System to system exchanges of highly structured data.

–     HIPAA MANDATES EDI STANDARDS!

Electronic Commerce:

– Multiple ways to communicate unstructured data.

– People-to-system or people-to-people exchanges.

What Standards?

       What is ANSI?

– American National Standards Institute

– Since 1917 the only source of American National

Standards

       What is ASC X12

– Accredited Standards Committee X12, chartered in

1979

Responsible for cross-industry standards for electronic documents
EDI Standards = Paper Forms

Paper records use forms to organize information. EDI uses standard transaction sets.

Healthcare Claim = 837

Payment & Remittance = 835

Invoice = 810

Purchase Order = 850



Converting standard forms into standard messages …

Standard Forms and Standard Formats

Which means strings of text …Called Segments

Segment ID    Segment Terminator
 




NM1*P2*1*Clinton*Hilary*R~



Segment Delimiter



… Composed of smaller pieces...

(Segments are composed of “data elements.”)


Individual Name      Last Name      Middle Initial
 



NM1*P2*1*Clinton*Hilary*R~
 


    Insured       Person           First Name

How Does EDI Work?


Moving Money and Remittance Data

       

Healthcare EDI:
 

1.EDI Transactions in healthcare:

The standards are meant to improve the efficiency and effectiveness of the American health care system by encouraging the widespread use of EDI in the U.S health care system. The HIPAA EDI transaction sets are based on X12 and the key message types are described below:

EDI Benefit Enrollment and Maintenance Set (834)

Can be used by employers, unions, government agencies, associations or insurance agencies to enroll members to a payer. The payer is a healthcare organization that pays claims, administers insurance or benefit or product. Examples of payers include an insurance company, health care professional (HMO), preferred provider organization (PPO), government agency (Medicaid, Medicare etc.) or any organization that may be contracted by one of these former groups.

EDI Health Care Claim Transaction set (837)

Used to submit health care claim billing information, encounter information, or both, except for retail pharmacy claims (see EDI Retail Pharmacy Claim Transaction). It can be sent from providers of health care services to payers, either directly or via intermediary billers and claims clearinghouses. It can also be used to transmit health care claims and billing payment information between payers with different payment responsibilities where coordination of benefits is required or between payers and regulatory agencies to monitor the rendering, billing, and/or payment of health care services within a specific health care/insurance industry segment.
For example, a state mental health agency may mandate all healthcare claims, Providers and health plans who trade professional (medical) health care claims electronically must use the 837 Health Care Claim: Professional standard to send in claims. As there are many different business applications for the Health Care claim, there can be slight derivations to cover off claims involving unique claims such as for Institutions, Professionals, Chiropractors, and Dentists etc.

EDI Health Care Claim Payment/Advice Transaction Set (835)

Can be used to make a payment, send an Explanation of Benefits (EOB) remittance advice, or make a payment and send an EOB remittance advice only from a health insurer to a health care provider either directly or via a financial institution.

EDI Payroll Deducted and other group Premium Payment for Insurance Products (820)

A transaction set which can be used to make a premium payment for insurance products. It can be used to order a financial institution to make a payment to a payee.

EDI Retail Pharmacy Claim Transaction (NCPDP Telecommunications Standard version 5.1)

Used to submit retail pharmacy claims to payers by health care professionals who dispense medications, either directly or via intermediary billers and claims clearinghouses. It can also be used to transmit claims for retail pharmacy services and billing payment information between payers with different payment responsibilities where coordination of benefits is required or between payers and regulatory agencies to monitor the rendering, billing, and/or payment of retail pharmacy services within the pharmacy health care/insurance industry segment.

EDI Health Care Eligibility/Benefit Inquiry (270)

Used to inquire about the health care benefits and eligibility associated with a subscriber or dependent.

EDI Health Care Eligibility/Benefit Response (271)

Used to respond to a request inquire about the health care benefits and eligibility associated with a subscriber or dependent.

EDI Health Care Claim Status Request (276)

This transaction set can be used by a provider, recipient of health care products or services or their authorized agent to request the status of a health care claim.

EDI Health Care Claim Status Notification (277)

This transaction set can be used by a health care payer or authorized agent to notify a provider, recipient or authorized agent regarding the status of a health care claim or encounter, or to request additional information from the provider regarding a health care claim or encounter. This transaction set is not intended to replace the Health Care Claim Payment/Advice Transaction Set (835) and therefore, is not used for account payment posting. The notification is at a summary or service line detail level. The notification may be solicited or unsolicited.

EDI Health Care Service Review Information (278)

This transaction set can be used to transmit health care service information, such as subscriber, patient, demographic, diagnosis or treatment data for the purpose of request for review, certification, notification or reporting the outcome of a health care services review.

EDI Functional Acknowledgement Transaction Set (997)

This transaction set can be used to define the control structures for a set of acknowledgments to indicate the results of the syntactical analysis of the electronically encoded documents. Although it is not specifically named in the HIPAA Legislation or Final Rule, it is necessary for X12 transaction set processing. The encoded documents are the transaction sets, which are grouped in functional groups, used in defining transactions for business data interchange. This standard does not cover the semantic meaning of the information encoded in the transaction sets.
2. 837 EDI Claims

EDI 837 Health Care Claim:

The EDI 837 transaction set is the format established to meet HIPAA requirements for the electronic submission of healthcare claim information. The claim information included amounts to the following, for a single care encounter between patient and provider:
§  A description of the patient
§  The patient’s condition for which treatment was provided
§  The services provided
§  The cost of the treatment

As of March 31, 2012, healthcare providers must be compliant with version 5010 of the HIPAA EDI standards. The 5010 standards divide the 837 transaction set into three groups, as follows: 837P for professionals, 837I for institutions and 837D for dental practices. The 837 is no longer used by retail pharmacies.

This transaction set is sent by the providers to payers, which include insurance companies, health maintenance organizations (HMOs), preferred provider organizations (PPOs), or government agencies such as Medicare, Medicaid, etc. These transactions may be sent either directly or indirectly via clearinghouses. Health insurers and other payers send their payments and coordination of benefits information back to providers via the 
EDI 835 transaction set.

EDI 837 Format:
ISA*00*          *00*          *ZZ*99999999999    *ZZ*888888888888   *111219*1340*^*00501*000001377*0*T*>
GS*HC*99999999999*888888888888*20111219*1340*1377*X*005010X222
ST*837*0001*005010X222
BHT*0019*00*565743*20110523*154959*CH
NM1*41*2*SAMPLE INC*****46*496103
PER*IC*EDI DEPT*EM*FEEDBACK@1EDISOURCE.COM*TE*3305551212
NM1*40*2*PPO BLUE*****46*54771
HL*1**20*1
PRV*BI*PXC*333600000X
NM1*85*2*EDI SPECIALTY SAMPLE*****XX*123456789
N3*1212 DEPOT DRIVE
N4*CHICAGO*IL*606930159
REF*EI*300123456
HL*2*1*22*1
SBR*P********BL
NM1*IL*1*CUSTOMER*KAREN****MI*YYX123456789
N3*228 PINEAPPLE CIRCLE
N4*CORA*PA*15108
DMG*D8*19630625*M
NM1*PR*2*PPO BLUE*****PI*54771
N3*PO BOX 12345
N4*CAMP HILL*PA*17089
HL*3*2*23*0
PAT*19
NM1*QC*1*CUSTOMER*COLE
N3*228 PINEAPPLE CIRCLE
N4*CORA*PA*15108
DMG*D8*19940921*M
CLM*945405*5332.54***12>B>1*Y*A*Y*Y*P
HI*BK>2533
LX*1
SV1*HC>J2941*5332.54*UN*84***1
DTP*472*RD8*20110511-20110511
REF*6R*1099999731
NTE*ADD*GENERIC 12MG CARTRIDGE
LIN**N4*00013264681
CTP****7*UN
NM1*DK*1*PATIENT*DEBORAH****XX*12345679030
N3*123 MAIN ST*APT B
N4*PITTSBURGH*PA*152181871
SE*39*0001
GE*1*1377
IEA*1*000001377

EDI 837 Specification:

This X12 Transaction Set contains the format and establishes the data contents of the Health Care Claim Transaction Set (837) for use within the context of an Electronic Data Interchange (EDI) environment. This transaction set can be used to submit health care claim billing information, encounter information, or both, from providers of health care services to payers, either directly or via intermediary billers and claims clearinghouses. It can also be used to transmit health care claims and billing payment information between payers with different payment responsibilities where coordination of benefits is required or between payers and regulatory agencies to monitor the rendering, billing, and/or payment of health care services within a specific health care/insurance industry segment. For purposes of this standard, providers of health care products or services may include entities such as physicians, hospitals and other medical facilities or suppliers, dentists, and pharmacies, and entities providing medical information to meet regulatory requirements. The payer refers to a third party entity that pays claims or administers the insurance product or benefit or both. For example, a payer may be an insurance company, health maintenance organization (HMO), preferred provider organization (PPO), government agency (Medicare, Medicaid, Civilian Health and Medical Program of the Uniformed Services (CHAMPUS), etc.) or an entity such as a third party administrator (TPA) or third party organization (TPO) that may be contracted by one of those groups. A regulatory agency is an entity responsible, by law or rule, for administering and monitoring a statutory benefits program or a specific health care/insurance industry segment.
3. 835 Remittance

EDI 835 Health Care Claim Payment/Advice:


The Electronic Remittance Advice (ERA), or 835, is the electronic transaction which provides claim payment information in the HIPAA mandated ACSX12 005010X221A1 format. These files are used by practices, facilities, and billing companies to autopost claim payments into their systems. You can receive your 835 files through your clearinghouse, direct connection, or Connectivity Director, with enrollment in Electronic Payments & Statements (EPS).
Benefits:
·   Eliminate manual keying; save time and effort
·   Reduce posting errors
·   Increase efficiency and save money
EDI 835(Electronic Remittance Advice)
The EDI 835 transaction set is called Health Care Claim Payment and Remittance Advice. It has been specified by HIPAA 5010 requirements for the electronic transmission of healthcare payment and benefit information.

The 835 is used primarily by Healthcare insurance plans to make payments to healthcare providers, to provide Explanations of Benefits (EOBs), or both. When a healthcare service provider submits an 
837 Health Care Claim, the insurance plan uses the 835 to detail the payment to that claim, including:
§  What charges were paid, reduced or denied
§  Whether there was a deductible, co-insurance, co-pay, etc.
§  Any bundling or splitting of claims or line items
§  How the payment was made, such as through a clearinghouse
A particular 835 document may not necessarily match up one-for-one with a specific 837. In fact, it is not uncommon for multiple 835 transactions to be used in response to a single 837, or for one 835 to address multiple 837 submissions. As a result, the 835 is important to healthcare providers, to track what payments were received for services they provided and billed.

EDI 835 Format:

ISA*00*          *00*          *ZZ*ABCCOM         *ZZ*99999999       *040315*1005*U*00401*004075123*0*P*:
GS*HP*ABCCOM*01017*20110315*1005*1*X*004010X091A1
ST*835*07504123
BPR*H*5.75*C*NON************20110315
TRN*1*A04B001017.07504*1346000128
DTM*405*20110308
N1*PR*ASHTABULA COUNTY ADAMH BD*XX*6457839886
N3*4817 STATE ROAD SUITE 203
N4*ASHTABULA*OH*44004
N1*PE*LAKE AREA RECOVERY CENTER *FI*346608640
N3*2801 C. COURT
N4*ASHTABULA*OH*44004
REF*PQ*1017
LX*1
CLP*444444*1*56.70*56.52*0*MC*0000000655555555*53
NM1*QC*1*FUDD*ELMER*S***MI*1333333
NM1*82*2*WECOVERWY SVCS*****FI*346608640
REF*F8*A76B04054
SVC*HC:H0005:HF:H9*56.70*56.52**6
DTM*472*20110205
CAS*CO*42*0.18*0
REF*6R*444444
CLP*999999*4*25.95*0*25.95*13*0000000555555555*11
NM1*QC*1*SAM*YOSEMITE*A***MI*3333333
NM1*82*2*ACME AGENCY*****FI*310626223
REF*F8*H57B10401
SVC*ZZ:M2200:HE*25.95*0**1
DTM*472*20021224
CAS*CR*18*25.95*0
CAS*CO*42*0*0
REF*6R*999999
CLP*888888*4*162.13*0*162.13*MC*0000000456789123*11
NM1*QC*1*SQUAREPANTS*BOB* ***MI*2222222
NM1*82*2*BIKINI AGENCY*****FI*310626223
REF*F8*H57B10401
SVC*ZZ:M151000:F0*162.13*0**1.9
DTM*472*20020920
CAS*CO*29*162.13*0*42*0*0
REF*6R*888888
CLP*111111*2*56.52*18.88*0*13*0000000644444444*53
NM1*QC*1*LEGHORN*FOGHORN*P***MI*7777777
NM1*82*2*CHICKENHAWK SVCS*****FI*346608640
REF*F8*A76B04054
SVC*HC:H0005:HF:H9*56.52*18.88**6
DTM*472*20031209
CAS*CO*42*0*0
CAS*OA*23*37.64*0
REF*6R*111111
CLP*121212*4*56.52*0*0*13*0000000646464640*53
NM1*QC*1*EXPLORER*DORA****MI*1717171
NM1*82*2*SWIPER AGENCY*****FI*346608640
REF*F8*A76B04054
SVC*HC:H0005:HF:H9*56.52*0**6
DTM*472*20031202
CAS*CO*42*0*0
CAS*OA*23*57.6*0*23*-1.08*0
REF*6R*121212
CLP*333333*1*74.61*59.69*14.92*13*0000000688888888*55
NM1*QC*1*BEAR*YOGI* ***MI*2222222
NM1*82*2*JELLYSTONE SVCS*****FI*346608640
REF*F8*A76B04054
SVC*ZZ:A0230:HF*74.61*59.69**1
DTM*472*20110203
CAS*PR*2*14.92*0
CAS*CO*42*0*0
REF*6R*333333
CLP*777777*25*136.9*0*0*13*0000000622222222*53
NM1*QC*1*BIRD*TWEETY*M***MI*4444444
NM1*82*2*GRANNY AGENCY*****FI*340716747
REF*F8*A76B03293
SVC*HC:H0015:HF:99:H9*136.9*0**1
DTM*472*20030911
CAS*PI*104*136.72*0
CAS*CO*42*0.18*0
REF*6R*777777
CLP*123456*22*-42.58*-42.58*0*13*0000000657575757*11
NM1*QC*1*SIMPSON*HOMER* ***MI*8787888
NM1*82*2*DOH GROUP*****FI*310626223
REF*F8*A57B04033
SVC*HC:H0036:GT:UK*-42.58*-42.58**-2
DTM*472*20110102
CAS*CR*141*0*0*42*0*0*22*0*0
CAS*OA*141*0*0
REF*6R*123456
CLP*090909*22*-86.76*-86.76*0*MC*0000000648484848*53
NM1*QC*1*DUCK*DAFFY*W***MI*1245849
NM1*82*2*ABTHSOLUTE HELP*****FI*346608640
REF*F8*A76B04054
SVC*HC:H0004:HF:H9*-86.76*-86.76**-4
DTM*472*20110210
CAS*CR*22*0*0*42*0*0
CAS*OA*22*0*0
REF*6R*090909
LQ*HE*MA92
SE*93*07504123
GE*1*1
IEA*1*004075123

EDI 835 Specification:

This X12 Transaction Set contains the format and establishes the data contents of the Health Care Claim Payment/Advice Transaction Set (835) for use within the context of the Electronic Data Interchange (EDI) environment. This transaction set can be used to make a payment, send an Explanation of Benefits (EOB) remittance advice, or make a payment and send an EOB remittance advice only from a health insurer to a health care provider either directly or via a financial institution.
5. Reports and Acknowledgements

EDI 999 Implementation Acknowledgment:

The EDI 999 transaction set is an Implementation Acknowledgement document, developed specifically to replace the 997 Functional Acknowledgement document for use in healthcare. Both the 997 and 999 are used to confirm that a file was received. However, the 999 includes additional information about whether the received transaction had errors. This includes whether the transaction is in compliance with HIPAA requirements.

The 999 Acknowledgement may produce three results:
§  Accepted (A)
§  Rejected (R)
§  Accepted with errors (E)
As a result, the 999 may acknowledge receipt of a transaction, such as a healthcare claim, but it does not necessarily mean that transaction will be processed. The 999 can also report on exactly what syntax issues caused the errors in the original transaction. 

The 999 transaction set becomes the standard acknowledgement document for healthcare as of March, 2012, when version 5010 of the HIPAA EDI standards takes effect. The exception to this is the use of a 
277 Healthcare Status Notification transaction, used specifically to confirm the receipt of a 276 Health Claim Status Request transaction.

EDI 999 Format:
ISA*00*          *00*          *12*4405197800     *01*999999999      *111219*1802*U*00401*000000001*0*T*:
GS*FA*4405197800*999999999*20111219*1802*1*X*004010X098A1
ST*999*0001
AK1*HC*121
AK2*837*987654
AK5*A
AK2*837*987655
AK5*E
AK9*E*2*2*1
SE*8*0001
GE*1*1
IEA*1*000000001

EDI 999 Specification:


This X12 Transaction Set contains the format and establishes the data contents of the Implementation Acknowledgment Transaction Set (999) for use within the context of an Electronic Data Interchange (EDI) environment. The transaction set can be used to define the control structures for a set of acknowledgments to indicate the results of the syntactical and relational analysis of the electronically encoded documents, based upon a full or implemented subset of X12 transaction sets. The encoded documents are the transaction sets, which are grouped in functional groups, used in defining transactions for business data interchange. This standard does not cover the semantic meaning of the information encoded in the transaction sets.

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