Medical Billing Services Market Description

The medical billing market provides an invaluable service.

The medical billing services market serves patients, health-care providers and insurance companies. Health-care providers submit claims to insurance companies to receive payment for patient services. The medical billing professional transmits a claim to an insurance company requesting payment using a diagnosis code.

History

Originally, health-care providers accomplished medical billing by filing paper claims with insurance companies. Advancements in technology allow the industry to electronically file claims. In addition, the Health Insurance Portability and Accountability Act (HIPAA) requires the electronic submission of health-related information.

Function

Medical billing services play an important role in completing a service transaction. Medical billing includes the initial submission of information, follow-up and tracking.

The Facts

According to the Healthcare Business Services Group, health-care providers spend $7 billion annually on medical claims processing. The industry arose from the health-care industry's need to outsource the labor-intensive billing process.

Considerations

HIPAA plays a significant role in how the medical billing industry executes services. The complexity of the act requires that patient information remain confidential which requires the industry meet electronic submission guidelines.

Significance

Medical billing services provide an invaluable service. The industry supports doctors, patients and hospitals by providing a method for collecting payment for services rendered. Medical billing professionals provide specialized services unique to the industry.

References

• Privacy Rights Clearinghouse: HIPAA Basics: Medical Privacy in the Electronic Age
• Vimcor: Institutional Research Report
• American Medical Billing Association