Good news on the ICD-10 front, the data continues to reveal a decrease in claims processing and payment times.
At the mid-year mark, our data is reflecting a steady decrease in claims processing and payment velocity. Reviewing average processing time from January 2016 through mid-June 2016, we are noting that:
- Average staff processing time has shown a steady decrease during the year, with average staff processing time in January of 17 days to an average of 8 days in May.
- Average payer processing time has decreased throughout the year, with an average of 15 days in January to 12 days in May.
- Total claims processing time was reduced by nearly 60%, with total processing time of 32 days in January to 12 days in June.
Payment velocity data also reveals excellent news for providers: as of June, our data is reflecting that on average nearly 80% of all claims are being paid within 30 days.
However, denial rates are holding relatively steady. June denial rates are 1% less than January.
It’s important to note that claims are still rolling in, especially for May and June, so the numbers may vary, though we don’t expect any major changes. As we move closer to October 2016, when the expected grace period for specificity on ICD-10 codes ends, will the data show huge shifts? Or, will we see the data continue to stay steady?
We will continue to monitor the data as October approaches. Stay tuned.