Tuesday, June 26, 2007

An unnecessary health care cost

I recently learned of a ridiculous health care cost driver - unnecessary paperwork!

I've worn contact lenses for over thirty years. I remember that the eye care people always want to be paid for the lenses before handing them to the patient; they never bill for them and insurance never pays for them. Such was the case when I picked up a new pair from an opthalmologist's office in a clinic.

I was therefore surprised when I received a notice from CMS (Center for Medicare & Medicaid Services) that the claim was denied and being sent to my Medigap insurer. I called the clinic billing office saying this claim should never have been sent because I had already paid it. The representative told me that it was being sent so they could have the denial. She didn't really want to hear that they should have already known the cost lenses were not covered.

This kind of legalism is adding costs to three entities: the clinic, Medicare, and my insurance company. Maybe if it only costs five dollars per claim per entitity, that adds fifteen dollars to the cost of the service. How many tens of thousands of these unnecessary transactions occur each week? Pretty soon we're talking real money!