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Thursday, 28 February 2013 09:01

A New Way to Lower Your Blood Pressure…

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dental software featuresTransaction Standards in the Dental Office

Have you ever wondered how international airline pilots coordinate their flights with air traffic controllers, who all speak different languages, as they fly over numerous countries? 

These controllers have a very critical job of maintaining a safe distance between aircraft as they coordinate altitudes, direction and flight schedules. 

The key to this process is world-wide agreed upon standards of communication.  This allows a German pilot to coordinate his flight from Madrid to Tokyo as he flies over Spain, Italy, Israel, Saudi Arabia, Oman, India, China and Japan. 

Likewise, it is agreed upon standards that allow dental offices, running various practice software products to electronically communicate to insurers. 

A standards organization called the American National Standards Institute (ANSI) sets standards in this country for everything from the thread specifications on nuts and bolts to electronic exchanges between a dental office and an insurance company. 

A few weeks ago, I blogged about the Electronic Remittance Advice (ERA) and how your practice could benefit from its use. 

Here’s a list of transactions that you should care about in your practice and their 3-digit ANSI identifier:

270 Eligibility or benefit inquiry
271 Eligibility or benefit response
276 Healthcare claim status inquiry
277 Healthcare claim status response
835 Remittance/payment advice
837 Healthcare claim

The 270/271 (eligibility inquiry and response) allows you to determine a patient’s insurance eligibility.  This exchange takes only a few seconds and you are often given not only their eligibility status, but a summary of the patient’s benefits as well.  

The 276/277 (claims status inquiry and response) is similar to the 270/271 but is asking the insurance company for the status of a particular claim.  Both transactions eliminate the need to call the carrier and transcribe the information you get over the phone.  

The 835 (remittance advice) offers the benefits I’ve previously blogged about while the electronic claim (837) is now a standard practice in most dental offices.  A major insurer in Oregon is mandating that you can only submit electronic claims and they will only respond with an electronic remittance and an EFT (Electronic Funds Transfer).

My post on “Connected Dentistry” says that more and more of these exchanges are in the future for the dental office.  Being prepared to utilize the appropriate transaction standards will lessen the complexity in your practice and lower your blood pressure.  

Just like that German pilot navigating across many countries on his way to a final destination, standards make it all work and are definitely a right click.

Read 2026 times Last modified on Thursday, 28 February 2013 10:36
Bill Hockett

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