What is a Clean Claim in Medical Billing (2024)

Medical billing is an administrative process that is necessary to manage a hospital’s smooth functioning. This process itself comprises multiple steps to improve the hospital’s efficiency by boosting its revenue cycle and improving medical care. It is important to note that three parties form an essential part of the medical billing cycle. These three parties are—the patient (first-party), health care provider (second party), and insurance company/payer (third party). As an independent administrative process, medical billing is necessary to share medical care information, payment, and reimbursem*nt details between the mentioned parties.

Sincemedical billing and collectionis associated with the reimbursem*nt and claims transmission process it is imperative to focus on the two types of claims that are associated with it.

There are two types of claims in medical billing.

Clean Claim:Medicare defines the term clean claim as “a claim that has no defect, impropriety, lack of any required substantiating documentation – including the substantiating documentation needed to meet the requirements for encounter data – or particular circ*mstance requiring special treatment that prevents timely payment”. A clean claim may refer to as a valid claim due to its role in the hassle-free process of making timely payment and enhancing the revenue cycle of the hospital. To file a clean claim, the hospital may outsource medical billing services from a reputed medical billing company.

Dirty Claim:The term dirty claim refers to the “claim submitted with errors or one that requires manual processing to resolve problems or is rejected for payment”.

In medical billing, a clean claim is the one that meets the following criteria.

  • The health care provider has a valid license to practice medicine on the date of service. He/she isn’t involved in any fraud and isn’t undergoing investigation.
  • The claims form should mention diagnosis code along with procedure code to substantiate the necessity of the medical treatment. Besides, deleted or expired codes are included in the claims form.
  • The patient’s insurance must cover the procedure performed. Also, the coverage should be in effect on the date of service.
  • The claims form must-have information like patient name, address, date of birth, identification number, and group number, etc.
  • The claims form also must have a payer’s information like name, identification number, and mailing address.
  • Timely submission of the claims form is indispensable.
What is a Clean Claim in Medical Billing (2024)

FAQs

What is a Clean Claim in Medical Billing? ›

A clean claim is one that needs to be submitted without any discrepancies or other issues, such as inadequate evidence, that would impede payment. An increased Clean Claim Rate indicates that the information collected and analyzed within the electronic health record (EHR) is of high quality.

What would be considered a clean claim? ›

(ii) Clean claim defined In this paragraph, the term “clean claim” means a claim that has no defect or impropriety (including any lack of any required substantiating documentation) or particular circ*mstance requiring special treatment that prevents timely payment from being made on the claim under this part.

How does CMS define a clean claim? ›

The term clean claim means a claim that has no defect, impropriety, lack of any required substantiating documentation - including the substantiating documentation needed to meet the requirements for encounter data - or particular circ*mstance requiring special treatment that prevents timely payment; and a claim that ...

Can a clean claim be denied? ›

While incorrect coding in a claim will almost certainly lead to denial, coding itself is only one piece of the clean claims puzzle. Administrative deficiencies can also lead to denied claims. It's strategically important to take a holistic approach to claims management that prioritizes clean claim submission.

What is a good clean claim rate? ›

Industry best practice for clean claim rate is 90% or above, which can be a difficult mark to hit. However, there are many ways to increase your clean claim rate and ensure that you're receiving timely and accurate payments.

What is the difference between clean and unclean claims? ›

Clean Claims are claims that have all information in them and nothing is missing. If any mandatory or conditional information is missing, the claim will be considered unclean. Examples of unclean claims include invalid member ID, provider data discrepancy NPI and atax ID does not match.

What is considered a clean claim in Quizlet? ›

clean claim. A claim (paper or electronic) was submitted within the program or policy time limit and contains all necessary information so that it can be processed and paid promptly. ( pg. 217)

How long does it take Medicare to pay a clean claim? ›

Your Medicare Part A and B claims are submitted directly to Medicare by your providers (doctors, hospitals, labs, suppliers, etc.). Medicare takes approximately 30 days to process each claim.

What are the risks to the billing process if claims are not clean? ›

Coding errors would lead to claim denials and hence, directly affect the process of revenue cycle management. Over time, the denied claims would stack up till they are corrected and resubmitted. This delay in submission of clean claims would cause financial instability for the medical practice.

What does CMS use to determine reimbursem*nt? ›

A Prospective Payment System (PPS) is a method of reimbursem*nt in which Medicare payment is made based on a predetermined, fixed amount. The payment amount for a particular service is derived based on the classification system of that service (for example, diagnosis-related groups for inpatient hospital services).

What is the most common rejection in medical billing? ›

One of the most common reasons for medical claim rejections is errors in coding and billing. Mistakes in assigning the correct medical codes can result in claim denials or delays in reimbursem*nt. Insurance companies rely on these codes to determine the medical necessity and coverage of services rendered.

What are 5 reasons a claim may be denied? ›

Here are a few reasons that you might see:
  • The claim has errors. ...
  • You used a provider that isn't in your health plan's network. ...
  • Your care needed approval ahead of time. ...
  • You get care that isn't covered. ...
  • The claim went to the wrong insurance company. ...
  • How to appeal a decision.
Sep 8, 2023

What common errors can prevent clean claims? ›

Simple Errors
  • Incorrect patient information. Sex, name, DOB, insurance ID number, etc.
  • Incorrect provider information. Address, name, contact information, etc.
  • Incorrect Insurance provider information. ...
  • Incorrect codes. ...
  • Mismatched medical codes. ...
  • Leaving out codes altogether for procedures or diagnoses.
  • Duplicate Billing.

What are the requirements for a clean claim? ›

In order to constitute a Clean Claim, the claim must necessarily: a) comply with all standard coding guidelines; b) contain no missing information; and c) be free of any potential defect or impropriety due to unbundling, incorrect or obsolete coding, or medical necessity.

What are the elements of a clean claim? ›

(1) patient's name is required; (2) patient's address is required; (3) patient's date of birth is required; (4) patient's sex is required; (5) patient's relationship to subscriber is required; (6) subscriber's name is required; (7) subscriber's address is required, but the provider may enter "Same" if the subscriber's ...

What is an other than clean claim? ›

A non-clean claim is defined as a submitted claim that requires further investigation or development beyond the information contained in the claim.

What counts as a good claim? ›

—Remember that not all claims are created equal, and though a claim may be arguable, the best claims are focused, specific, complex, and relevant. In arguing a claim, you should always consider potential counterclaims and counterarguments.

How long does it typically take to receive payment with a clean claim? ›

These laws typically require the company to pay within 30 days of receiving a “clean claim” that contains all of the information that the payer needs to process the claim.

What is a dirty claim quizlet? ›

dirty claim. an insurance claim submitted with errors or one that requires manual processing to resolve problems or is rejected for payments.

What type of claim is accepted by a clearinghouse? ›

What are Clearinghouses? In the healthcare industry, a clearinghouse is an institution that electronically transmits different types of medical claims data to insurance carriers. Types of claims data include pharmacy claims, dental claims, DME claims, inpatient and outpatient claims, and more.

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