It has long been established that large and mid-sized U.S. companies are often wisest to self-fund their medical and pharmacy plans. This approach entails considerable cost risk, making medical claim audits essential for managing these plans effectively. They conduct routine audits to adhere to regulations such as Sarbanes-Oxley and ERISA while consistently monitoring claim payments. These proactive measures shield companies from unexpected spikes in medical and pharmacy expenses. Investing in auditing and monitoring is significantly lower than the amount saved by preventing overpayments and errors.
Self-funding is not limited to for-profit businesses; government agencies, municipalities, and educational institutions also utilize similar claim auditing and monitoring services. If you are an in-house benefit plan manager it’s smart to enhance your company’s auditing and monitoring capabilities to meet current standards. For instance, a thorough audit of your pharmacy plan can reveal instances where expensive brand-name medications were dispensed instead of generic alternatives, resulting in substantial savings. In-house benefit plan managers gain improved oversight of their plan administrators through enhanced auditing and monitoring. Having factual data at your disposal facilitates more productive discussions.
Identifying errors promptly enables you to advocate for necessary improvements within your system, leading to better services for members and tighter cost management. If you have experienced unexpected budget shortfalls in the past, having up-to-date and accurate data can better equip you to tackle such issues, helping your plan stay within budget. Continuous monitoring of claim payments is becoming one of the fastest-growing services in this field and is an excellent management tool for self-funded plans. Its routine reports that flag errors early and spot trends promptly are most helpful.
Advanced audit firms leverage sophisticated software and methods to scrutinize each claim as it is processed, delivering unparalleled accuracy. This proactive approach allows in-house managers to keep track of payments and promptly identify errors. Systemic enhancements can be implemented when issues are detected and resolved in real time, preventing minor problems from escalating into major challenges. This represents a significant advancement over the previous method of conducting random-sample audits after claims have already been settled. It adds a needed layer of on-time oversight.