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5 Effective Strategies for Reducing Veterans Affairs Denied Hospital Claims

August 21, 2024
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Veterans Affairs (VA) claims management presents significant challenges for healthcare organizations. The complex nature of VA regulations, coupled with the unique needs of veteran patients, creates a landscape where claim denials can significantly impact hospital revenue and patient care quality. This article outlines five essential strategies that hospital and healthcare system teams should employ to mitigate the primary causes of VA claim denials. Implementation of these approaches can safeguard hospital revenue, enhance patient experiences, and reduce financial burdens on veterans.

1. Adherence to VA Authorization Protocols

Proper authorization is the cornerstone of successful VA claims. It is imperative that all care provided to veterans receives appropriate authorization from the VA.

Key Points:
  • Non-urgent care necessitates prior authorization from the VA
  • Emergency care requires VA notification within 72 hours of treatment initiation
  • The healthcare provider’s status within the VA network determines the authorization process:
    • In-network providers may seek authorization directly from the VA
    • Out-of-network providers often work through the Community Care Network Third-Party Administrator (CCN TPA)
Best Practices:
  • Implement a dedicated VA authorization team familiar with VA-specific requirements
  • Utilize electronic authorization systems to streamline the process and reduce errors
  • Establish clear protocols for emergencies to ensure timely notification
  • Regularly train staff on VA authorization procedures and updates to VA policies
Impact:

Adhering to proper authorization protocols can significantly reduce claim denials related to lack of authorization, which is a common cause of VA claim rejections. This practice not only improves reimbursement rates but also ensures veterans receive timely, approved care.

2. Persistence in Appealing Claim Denials

While claim denials are commonplace, they need not be conclusive. A robust appeals process can recover substantial revenue and improve overall claim approval rates.

Key Points:
  • Upon receiving a denial, healthcare providers should thoroughly review the reason and gather supporting evidence for an appeal
  • Appeals must be submitted within 90 days of a denial to comply with timely filing requirements
  • The appeals process can be complex, often benefiting from expert assistance
Best Practices:
  • Establish a dedicated team for handling VA claim appeals
  • Develop a systematic approach to categorizing and addressing common denial reasons
  • Maintain detailed records of all communication with the VA during the appeals process
  • Consider partnering with specialized VA claims management entities for complex cases
Impact:

A persistent and well-executed appeals strategy can lead to the reversal of many claim denials, significantly increasing revenue recovery. Moreover, insights gained from the appeals process can inform improvements in initial claim submissions, reducing future denials.

3. Accurate Determination of Primary Payer

In cases of multiple insurance coverage, correctly identifying the primary payer is crucial for timely and accurate claim processing.

Key Points:
  • Determine when VA insurance serves as the primary or secondary payer
  • Identify the appropriate entity for claim submission (VA, CCN TPA, or another insurance provider)
  • Ensure patient access representatives are trained to gather comprehensive insurance information
Best Practices:
  • Implement a standardized process for collecting and verifying insurance information at every patient encounter
  • Utilize advanced eligibility verification tools to cross-check VA benefits with other insurance coverage
  • Regularly update staff training on the nuances of VA coverage and its interaction with other insurance types
  • Establish clear communication channels with the VA and other insurers to resolve payer determination issues quickly
Impact:

Accurate primary payer determination reduces claim rejections due to incorrect billing, speeds up the reimbursement process, and minimizes the need for claim resubmissions or appeals.

4. Timely Submission of Supporting Documentation

Prompt and comprehensive documentation submission is crucial for smooth claim processing and is often a requirement for participation in VA programs.

Key Points:
  • Submit documentation to the VA within 30 days of treatment, as mandated for participation in the Community Care Network (CCN)
  • Utilize various submission methods, including online platforms, email, fax, or postal mail
  • Ensure all submitted documentation is complete, accurate, and relevant to the claim
Best Practices:
  • Implement electronic health record (EHR) systems that facilitate quick and accurate documentation
  • Establish internal deadlines for documentation completion that are well before the VA’s 30-day requirement
  • Create a checklist of required documents for different types of VA claims to ensure completeness
  • Regularly audit documentation submission processes to identify and address any bottlenecks or inefficiencies
Impact:

Timely submission of comprehensive documentation significantly reduces the likelihood of delays and denials. It also positions the healthcare provider favorably in terms of compliance with VA requirements, potentially leading to smoother relationships and faster claim processing in the future.

5. Thorough Verification of Claim Submission Accuracy

Given that a significant percentage of claim denials are attributable to data errors, implementing a rigorous verification process is essential.

Key Points:
  • Research indicates that 61% of claim denials across all payers are due to data errors
  • VA claims are subject to the same scrutiny and are equally susceptible to data-related denials
  • A comprehensive pre-submission review process is crucial for improving claim acceptance rates
Best Practices:
  • Implement a multi-point verification system that checks:
    • Patient information accuracy
    • Correct payer identification
    • Proper authorization receipt
    • Alignment of provided services with authorization scope
    • Completeness of all necessary documentation
  • Utilize claim scrubbing software to identify potential errors before submission
  • Conduct regular staff training on common error types and prevention strategies
  • Implement a peer review process for complex claims to ensure accuracy

Optimizing VA Claims Management: A Win-Win for Hospitals and Veterans

A thorough verification process can dramatically reduce the number of preventable claim denials. This not only improves the overall acceptance rate of claims but also reduces the administrative burden of managing denials and appeals.

Effective management of VA claims is critical for maintaining financial stability in healthcare providers while ensuring quality care for veterans. By implementing these strategic approaches—adhering to authorization protocols, persistently appealing denials, accurately determining payers, submitting documentation promptly, and verifying claim accuracy—hospitals can optimize their processes, minimize denials, and expedite claim resolutions.

Moreover, healthcare providers should consider partnerships with specialized entities in VA claims management to leverage expert knowledge and advanced technologies. Such collaborations can further enhance the efficiency and effectiveness of VA claims processing.

These improvements not only benefit healthcare providers through increased revenue and reduced administrative costs but also contribute to a more efficient and veteran-friendly healthcare system. By streamlining the claims process, hospitals can focus more resources on providing high-quality care to veterans, reducing their financial burdens, and improving overall patient satisfaction.

As the healthcare landscape continues to evolve, staying abreast of changes in VA policies and regulations will be crucial. Healthcare organizations are encouraged to foster a culture of continuous improvement in their VA claims management processes, regularly reviewing and updating their strategies to align with best practices and regulatory requirements.

Are you ready to optimize your VA claims process?

Partner with Aspirion to optimize your VA claims process. Our expertise can help safeguard your financial stability while enhancing your ability to serve veterans with excellence and compassion. Let us support your commitment to providing top-quality care for those who’ve served our nation, reach out here.

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For over two decades, Aspirion has been a trusted ally to hospitals and health systems nationwide, focusing on maximizing revenue from denials, underpayments, and complex claims. Our team of expert legal, clinical, and technical professionals leverages cutting-edge proprietary technology powered by artificial intelligence to ensure our provider partners recover their earned revenue. With a client base spanning the entire United States, Aspirion proudly serves half of the nation's 10 largest health systems.

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