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AMA Supports Model Rule to Streamline Medical Billing for Workers’ Compensation Insurance

For immediate release:
April 25, 2012

CHICAGO - As part of its ongoing effort to save the health system billions of dollars by improving the efficiency of medical claims processing, the American Medical Association (AMA) today announced its support for a model state regulation intended to encourage electronic processing of medical claims in the workers’ compensation system.

The model rule offers states the opportunity to improve efficiency and lower costs in the workers’ compensation system. The cost of processing an electronic medical claim is 46 percent less than the cost of processing a paper medical claim, according to an insurance industry study.

“Bringing the billing process for workers’ compensation insurance into the electronic age will benefit physicians, employers, insurers and state governments,” said AMA Chair-elect Steven J. Stack, M.D. “Streamlining the exchange of claims and billing information will reduce administrative costs and paperwork, while generating savings that can help stabilize workers’ compensation insurance premiums.”

The model rule endorsed by the AMA was developed by the International Association of Industrial Accident Boards and Commissions (IAIABC).  The regulatory approach offered by IAIABC calls for adopting a nationally-recognized set of uniform standards to guide electronic billing in the workers’ compensation system. State regulators in California and Texas have already adopted rules based on the this model, while several states, including Georgia, Louisiana, North Carolina and Oregon, are moving steadily toward adoption. The AMA will work with IAIABC, state and specialty medical organizations and others to promote state adoption of the model rule.

To help physicians take advantage of the benefits of electronic billing in the workers’ compensation system, the AMA is offering a wealth of educational resources. To learn more, please visit the AMA’s Practice Management Center website at www.ama-assn.org/go/workerscomp to access the AMA’s workers' compensation toolkit and state-specific resource map.

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Contact:

Robert J. Mills
American Medical Association
(312) 464-5970

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