Minnesota goes electronic today with medical billing

The state of Minnesota is turning a corner that no other state has dared face in the same way.

A 2007 law takes effect today, requiring “electronic billing of all health care claims.”

The effort to eliminate paperwork, standardize billing terms and reduce errors will save an estimated $60 million per year, said David Haugen, director for the Minnesota Department of Health’s Center for Health Care Purchasing Improvement.

“We think the savings potential has been estimated pretty conservatively,” Haugen said Monday.

Mountains of paperwork pass through the nation’s health care system daily and, often, no two forms include the same definitions for the words written upon them.

Now, Minnesota has defined a standard set of terms that all health providers, including doctors, dentists, chiropractors and hospitals, must use when billing for a health care claim.

“Each year, more than 55 million medical bills, known as health care claims, from these health care providers are processed in Minnesota, resulting in significant transactions costs — and opportunities for savings,” the Minnesota Department of Health said in a statement.

The changes “may be especially challenging” for small health providers, Haugen said. Most offices already have begun implementing the changes. Read More Medical Billing Outsourcing