Readers Write: Ready or Not, ASC X12 275 Attachment EDI Transaction Is Coming

Ready or Not, ASC X12 275 Attachment EDI Transaction Is Coming
By Lindy Benton

As electronic as we are in many aspects of business – and life in general – oftentimes healthcare providers and payers are still using paper for claim attachment requests and responses. With the ASC X12 275 attachment electronic data interchange on the horizon, the need for utilizing secure, electronic transactions will soon be here.

Let’s look at the claim attachment process.

1. A claim attachment arises when a payer requests additional information from a provider to adjudicate a claim. This attachment is intended to provide additional information or answer additional questions or information not included in the original claim.
2. In many instances, the process for sending and receiving attachments is still largely done via a manual, paper-based format.
3. Paper-based transactions are slow, inefficient, and can bog down the revenue cycle. Additionally, paper transactions are prone to getting lost in transit and are difficult if not impossible to track.
4. The ASC X12 275 transaction has been proposed as a secure, electronic (EDI) method of managing the attachment request while making it uniform across all providers and payers.

The ASC X12 275 can be sent either solicited or unsolicited. When solicited, it will be when the claim is subjected to medical or utilization review during the adjudication process. The payer then requests specific information to supplement or support the providers request for payment of the services. The payer’s request for additional information may be service specific or apply to the entire claim, the 275 is used to transmit the request. The provider uses the 275 to respond to the previously mentioned request in the specified time from the payer.

Both HIPAA and the Affordable Care Act are driving the adoption of these secure, electronic transaction standards. HIPAA requires the establishment of national standards for electronic healthcare transactions and national identifiers for providers, health insurance plans, and employers. In Section 1104(b)(2) of the ACA, Congress required the adoption of operating rules for the healthcare industry and directed the secretary of Health and Human Services to “adopt a single set of operating rules for each transaction” with the goal of creating as much uniformity in the implementation of the electronic standards as possible.

Providers and payers will be required to adopt these standards at some point and it will happen sooner rather than later, so it’s time to be prepared.

The final specifications and detail for the EDI 275 transaction were supposed to be finalized in January 2016, but that has yet to happen. Both the American Health Association and American Medical Association have urged the Department of Health and Human Services to finalize and adopt the latest 275 standard, so with that kind of backing, it’s only a matter of time until the 275 transaction standard gains momentum and comes to fruition.

EDI 275 is coming. The question is, will you be ready?

Lindy Benton is president and CEO of Vyne of Dunwoody, GA.