Eliminating Paper Claims Unlocked $300K+ in Annual Savings

According to the CAQH 2023 Index, the U.S. healthcare system could save $1.7 billion annually if all claims were processed electronically instead of on paper. Paper claims cost an average of $6 each to process, compared to just $0.90 for electronic claims.

Real-world examples reinforce these savings: Omega Healthcare reported saving 15,000 employee hours per month and achieving a 30% ROI from automation (Business Insider Case), while Guidehouse helped recover $44M in denied accounts and free up 2,000 staff hours (Guidehouse Case Study). Together, these insights underscore the scale of opportunity for payers who eliminate paper and embrace automation.

The Challenge 

A national payer wanted to accelerate its shift away from paper claims to electronic processing. Despite initial progress, adoption lagged. Two main barriers stood in the way:

• Adoption Gaps: Payer IDs weren’t fully aligned across trading partners, causing transactions to default to paper.
• ROI Visibility: Leadership required measurable proof that electronic adoption would generate financial returns. 

The Solution 

The payer partnered with Smart Data Solutions, and we launched a targeted outreach campaign to the Smart Data Solutions trading partners. The program focused on: 

• Payer ID Alignment: Capturing and validating all payer IDs to close routing gaps.
• Real-Time Transactions: Prioritizing adoption of eligibility and claim status checks while also enabling a dramatic increase in electronic claims submission.
• Scalability: Ensuring that as volumes grew, transactions flowed seamlessly and electronically. 

Closing these gaps ensured transactions were routed electronically and no longer defaulted to paper. 

The Results 

The impact was clear within 90 days: 

• Transaction Growth: Electronic transactions increased 1,779%, scaling from 291 in May to 5,474 in August.
• Financial ROI: By shifting this volume from paper to electronic, the payer avoided nearly $28K in monthly costs (based on average industry savings) — equating to over $300K in annual savings.
• Operational Efficiency: Faster, more reliable electronic transactions reduced administrative burden and improved the payer–provider experience. 

Conclusion 

This payer’s success highlights how eliminating paper claims unlocked measurable ROI, strengthens provider relationships, and delivers sustainable operational efficiency. By addressing adoption barriers and scaling electronic processing, they turned a challenge into $300K+ in annual savings and positioned themselves for long-term success. 

Are your curious how much your organization could save? 

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