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Healthcare Claims Audits: Are you auditing?

Your company needs to be conducting annual healthcare claims audits. YES, you are entitled to claims audits! Healthcare claims are one of the biggest expenses for companies that self-fund their employee healthcare plans. How do you ensure you are not overspending on claims?

Employer Healthcare Costs are Rising

Healthcare costs, to no one’s surprise, have continued to rise. This includes costs for services, costs to employers, and costs to individuals. While companies are picking up a large percent of the bill each year through premiums, the employees are seeing higher out-of-pocket costs, both in payroll deductions and overall deductibles.

Healthcare Claims Audits can help save employees money and keep deductibles from rising.
Average Annual Deductible for Employer-Sponsored Health Insurance Plans
Source: Statista.com

Healthcare claims audits help keep spending under control by finding overpayments and recovering funds. Then, that money can be used to retain the current benefit level or be invested in other company initiatives.

Employers cover about 70% of health-insured workers in the United States.

Employees still cite health insurance as the most desired benefit in the workplace. This benefit is usually the biggest cost outside of salary for employers.

Key Fact:

Health insurance expenditures totaled $3.6 TRILLION in 2018. If you’re one of the 99% of large firms that provide employee health insurance, you’re paying a big part of this tab!

A few more quick stats:

  • In 2020, the total direct written premiums totaled almost $825 billion. This was an 11% increase over 2019.
  • The average single-employee coverage cost to an employee was more than $7,000.
  • Employers cover the largest share of worker health insurance premiums, averaging about 30% of family premiums and 18% for single coverage. (Source: balancingeverything.com)

Don’t you want to know that your contribution is being managed properly? Healthcare claims audits are the way you can help control the financial integrity of your investment.

Why Healthcare Claims Audits?

Each year, 232 MILLION healthcare claims are filed in the United States.

Even if only 1% of the claims are incorrectly filed, that is more than 2 million mistakes. In fact, the industry average is almost 3% in errors. Unbelievably, this is considered acceptable. The truth is that mistakes are going to happen, but you CAN control the impact on your company with consistent healthcare claims audits. Two outcomes are likely. Both results protect your investment and return dollars to your budget for other uses.

  1. The audit finds overpayments & recoveries are returned to the company.
  2. If the audit is more than a random sample audit and instead analyzes every claim, the audit also finds systemic errors in the claims process. These findings allow solutions to be implemented so the same errors do not continue to cost your company money in the future.

What Do Healthcare Claims Audits Find?

Your healthcare claims are data sets. Trends are discovered based on a complete analysis of data. Once these trends are identified, policies can be reviewed and revamped as needed. This is not unique to healthcare claims audits. But, what is unique is that self-funding companies often do not know that they are in control of this data, not a third-party administrator (TPA).

You own this data. We can’t emphasize this enough. While TPAs often include basic audits in their service agreements, they are not financially motivated to ensure complete accuracy. Yet, not performing an audit can cost a company hundreds of thousands of dollars in overpaid claims. We are seeing more and more service agreements with language that is limiting a company’s right to audit all their paid claims and even discouraging outside audits. Do not sign agreements with this clause in place! TPAs are not our adversary. Rather, we work with them to save you – the main stakeholder – the most money. We do the work – so you don’t have to!

Key Fact:

Healthcare fraud costs the United States nearly $6 BILLION a year. Thankfully, most mistakes aren’t fraud. But when fraud does occur, it can mean substantial losses. Audits find the legitimate mistakes and the fraudulent claims.

Best ROI for Hours of Your Time

HR managers, benefits managers, and insurance brokers are already stretched thin. We get it! Our audit process lets you choose how involved you want to be in the process. If you only have a few hours to dedicate to exploring your audit options, that’s all we need. Once you’ve identified any specific issues and provided plan documents, we do the rest.

So, now that you know healthcare claims audits are an option, don’t wait. Start saving your company and employees money today! For more information on how our “every claim” audit is different, please read our blog “We do the work, you save the money.” Contact us directly at 800-646-9987 or online.


Healthcare Horizons is a leading expert in providing healthcare claims audit services, identifying overpaid or erroneous claims through its 100% Difference model, recovering millions of dollars for clients’ bottom lines with uncompromising ethics and accuracy. Since 1999, the Knoxville, Tennessee-based company has provided superior healthcare claims audits for some of the world’s largest self-insured employers, involving all national and most regional payers. We have successfully identified and facilitated the recovery of millions of dollars of overpaid claims for employers.

 

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How to Maximize Healthcare Cost Containment

*This article has been updated to include new information.*

Helping Human Resource Leaders become Healthcare Heroes!

At the upcoming Society of Human Resource Management (SHRM) conference, Healthcare Horizons will meet with hundreds of individuals tasked with ensuring that a company’s health insurance benefit is a viable option for their employees, without sacrificing coverage to reduce cost. The #SHRM21 theme was “Now More than Ever… It’s time for HR to step up and deliver.” The #SHRM22 theme “Cause the Effect” continues this idea that what HR does impacts every single aspect of a company and its bottom line. Healthcare Horizons helps human resource leaders maximize the cost containment of healthcare claims, allowing funds that would normally be spent on overpayments to be used for other worthy company initiatives.

Benefits are the #1 employee perk
According to GlassDoor, 57% of new hires cited benefits, and specifically health insurance, as a leading factor in their final decision to accept a job.

What does this mean for healthcare administration?

Human Resource departments play a part in many initiatives for a company, all designed to improve employee welfare and support company goals. One goal of the HR benefits manager is to provide healthcare benefits at the best possible cost, for both the employer and the employee.

Since healthcare is one of a company’s largest expenses, cost-containment is critical. Unfortunately, medical claims errors happen routinely in healthcare. Audits are vital to uncovering these errors and recovering funds. This process protects both the company and the employees.

Self-insured employers can lose millions of dollars each year in incorrectly paid medical claims. These errors drive the cost of insurance programs up, costing the employer and, consequently, the employee more.

Every time a claim is overpaid, an employee’s coverage is impacted. This may show up immediately through paying more out-of-pocket dollars toward a deductible. Or the impact may not be noticed until the next year when they see an increase in co-pays, deductibles, or premiums. From an HR perspective, this leads to unhappy employees.

charts showing rising cost of healthcare due to claim errors
Systemic errors in healthcare claim processing cost employers & employees money. Audits catch the mistakes!

How can we help with cost containment?

Performing regular healthcare audits benefits both the employer and the employee. “Every claims data set contains errors.  People aren’t perfect, mistakes happen,” says Beverly Healey, Operations Manager for Healthcare Horizons, and SHRM21 attendee. “Healthcare Horizons audit processes work with your third-party administrator to not only uncover incorrect billing but also to identify systemic issues that may be costing the employers thousands, even millions, over time.”

To learn more about how HR leaders can improve a company’s healthcare bottom line, stop by SHRM Booth #2870 or contact us directly.

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The Difference is in Knowing.
Healthcare Horizons is a leading expert in providing healthcare claims audit services, identifying overpaid or erroneous claims through its 100% Difference model, recovering millions of dollars for clients’ bottom lines with uncompromising ethics and accuracy. Since 1999, the Knoxville, Tennessee-based company has provided superior healthcare claims audits for some of the world’s largest self-insured employers. We have successfully identified and facilitated the recovery of millions of dollars of overpaid claims for employers.

Making a List, Checking it Twice

As we approach the end of 2017, what do you have planned to close the year out strong?  Have you decided how you can best evaluate your medical spend of 2017?  Have you considered ways to lower your costs in 2018?

One unintended consequence of self-insuring is that claims payers have no financial incentive to ensure that the claims paid out of your pocket, are correct and accurate. Mistakes and overpayments are often overlooked. Our comprehensive healthcare claims audit looks at every claim, and identifies systemic errors, that when corrected, lead to future savings.  That is our 100% Difference!  In the process, we treat your TPA relationships with respect. You decide which claims to pursue and we do the work, so you don’t have to.  The money we help you recover goes straight back to your bottom line.

Before you wind down 2017, contact us to find out the steps you can take to protect your financial interests and better serve your employees.  Let us help you make 2018 a great year for your bottom line.  THE DIFFERENCE IS IN KNOWING.

Visit Healthcare Horizons today to learn more, or contact us at hhadmin@healthcarehorizons.com to discuss a free healthcare claims audit assessment.

Wishing you a very happy holiday season!

 Randy King is president of Healthcare Horizons Consulting Group, Inc., which has performed healthcare claims audits since 1999.  Trusted partner.  Uncompromising accuracy.  Superior personal service.  We have recovered millions of dollars for some of the world’s largest employers and audited claims by all national third-party administrators.
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Randy King is president of Healthcare Horizons Consulting Group, IncHealthcare Horizons has performed healthcare claims audits for over 16 years and serves self-insured companies ranging from small employers (250 employees or more) to several Fortune 100 companies.