Knowledge Center

Electronic Data Interchange (EDI)

 Electronic data interchange (EDI) can be defined as the structured transmission of data across different computers on the internet (or VAN) by electronic means. It can be effectively used to transfer various documents or business data electronically from one computer system to another computer system without human intervention. EDI helps in speeding up the process of transfer of data, which otherwise would take days through physical mode of transfer.

EDI is more than mere electronic mail (email); as for example, organizations might replace various documents with appropriate

EDI messages. It goes with a specific family of standards, e.g. UN/EDIFACT, ANSI X12. The electronic transfer has proven to be a boon for many industries and government organizations. Various organizations are getting connected to each other via internet or leased line for inter-connection of departments and transfer of data electronically.

Electronic data interchange (EDI) has been effectively implemented by various government departments including tax departments for electronic filing of tax returns and other documents. This has proven to be of great help to government departments as well as individuals in speeding up the over all process that ensures saving of great amount of time and efforts. The system not only saves time but also helps in cutting down the cost of administration to a great extent.

The most beneficial use of electronic data interchange (EDI) has been seen in electronic medical claim filing. There are 11 steps in paper submission of insurance claims--21 steps if a claim gets rejected. This effectively gives the carriers several built-in reasons to delay payments to healthcare providers from 45 to 90 days and results in claims going unpaid. It is not uncommon for paper claims to experience 20% to 30% rejection rates. Just the fact that the forms are mailed usually results in payment at least 30 days after submission.

Paper claims submission is time consuming, expensive and results in preventable delays in getting paid, where as electronic data interchange (EDI) ensures smooth flow of claims re-imbursement by cutting down chances of errors and delays. More than 90% of organized medical setups or hospitals in USA have switched to electronic claims filing and the trend is catching up with physicians and other healthcare professionals.

ClaimatTM: Claimat is an integrated healthcare connectivity application providing cost effective, self-sufficient and direct connectivity products and services for the healthcare industry. Claimat is an easy to use claims submission and management system.