Minnesota takes the lead in mandating electronic claims filing

Minnesota is believed to be the first state in the nation to require electronic claims filing in a standard format by 2009. Under the law, physicians, as well as public and private group purchasers, must exchange standardized eligibility information, claims, payment, and remittance advice electronically. Health plans will also be required to provide payment guidelines in standardized and electronic format.

The law, which the Minnesota Medical Association supports, is expected to save physicians' time and money. For one, they can expect a faster turnaround of claims- just 2 weeks with electronic filing versus 60 to 90 days with paper claims. For another, they will no longer have to deal with the varying standards used by individual payers.

Still, as American Medical News (7/23-30/2007) noted, there can be a downside: "Practices that lack sophisticated software could fail to notice that an insurer left a payment out of a bundled claim."