HDM announces PreAudit, the quick way
to know if you have big problems with
health plan expense

Beginning October 20, 2009 and continuing through December 31, 2009, Healthcare Data Management, Inc. (HDM) will offer PreAudit, a scan of two months worth of recently paid medical claims or prescription drug claims.

The offer is targeted at self-funded plans that will find it useful for one of two reasons: 1) to decide to pursue a comprehensive look at their health plan expense, because of some suspicion of error or plan misuse or 2) to provide an inexpensive double-check of a recently completed retrospective audit that was based on a random sample of paid claims.

“Either way, PreAudit can be highly useful to certain plans,” Jim Herrington, HDM’s Chief Marketing Officer, said. It’s certainly not meant to substitute for an audit, but it will highlight problems such as ineligible benefits, duplicate claims payments, incorrect deductibles and co payments, and it will signal the potential magnitude of the problems.

“Based on the Preview Results of its study of the relative efficacy of the random sample audit and HDM’s 100-percent-of-claims, retrospective audit, HDM expects PreAudit to be especially useful in flagging claim errors that a random sample audit may have missed,” explained Bill Conlan, HDM’s CEO. “The PreAudit will definitely employ our 100 percent of claims methodology.”

The PreAudit is essentially an opportunity to get the New Year off to the right start by pointing the way to problems with health plan expense that need to be resolved,” Herrington added.

The cost of the PreAudit is $3,000 for two months of medical claims, $2,500 for two months of prescription drug claims.

In most cases, PreAudit will take no more than five weeks from date of data feed to HDM through the submission of a final mini-report.

For more information about PreAudit, contact Jim Herrington at 800-859-5119 ext. 280 — jherrington@hdminc.com or Bill Conlan at 800-859-5119 ext. 224 — bconlan@hdminc.com.