SwipeIT FAQ
Project SwipeIT is an industry wide initiative launched by the Medical Group Management Association (MGMA) in January 2009 to advance the adoption of standardized patient health-insurance identification (ID) cards containing machine-readable information. MGMA estimates that the health care industry wastes as much as $2.2 billion annually as a result of nonstandardized cards.
Why are nonstandardized, nonmachine-readable cards so costly to the industry?
- Nonstandard appearance and content contribute to a higher error rate in manual transcription and entry of patient information. Many cards have photos, illustrations and dark colors that make accurate photocopying difficult.
- Lack of machine-readable data requires manual data entry with high labor cost and high potential for human error.
- Cost of making copies of patients' ID cards (labor and materials).
All these factors lead to rework for providers and costly manual intervention for insurers.
Who benefits from standardized ID cards?
Everyone. Patients will have less hassle from denied claims. Providers will save money on labor and copying, and will get paid more quickly and accurately. Insurers will save by doing less manual work on rejected claims. Ultimately, employers should see savings from less growth in health care costs.
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Why is MGMA launching this campaign now?
Because this is an area where a simple change can save immense amounts of money. Standards for patient health-insurance ID cards were developed in 1997, but have not yet been widely implemented.
Economic pressure – exacerbated by the nation’s credit crisis – squeezes our health care system to the breaking point. It’s time for the industry to look inward at the duplicative, wasteful and valueless processes that drive up health care costs for all stakeholders.
The time is very much past due. We are taking the lead to make it happen NOW.
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Have government health plans been invited to participate in this initiative?
Yes, absolutely. We have invited government insurers to pledge to adopt machine-readable, standardized patient health-insurance ID cards.
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What is the WEDI implementation guide for health insurance ID cards?
The Workgroup for Electronic Data Interchange (WEDI) developed an implementation guide to enable automated identification using standardized health-insurance ID cards. The guide standardizes present practices and brings uniformity of information, appearance and technology to the more than 100 million cards issued by health care providers, health plans, government programs and others.
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Why haven't health insurance ID card standards been widely accepted and implemented yet?
Primarily because of inertia. It is difficult for one insurer to make the change alone. The market requires a critical mass of companies to make it worthwhile for providers to use the new technology.
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Won't it be costly for insurers to redesign and reissue cards to their beneficiaries?
The comparative cost difference for issuing paper and electronic cards is minimal. The savings that insurers will see from reduced claim denials, provider inquiries, re-work and labor will far exceed this cost.
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You are asking stakeholders to pledge their support, but how will you ensure compliance?
In Phase 1 of the project, we are asking insurers to agree to issue WEDI-compliant, machine-readable cards by January 2010. In Phase 2, we will publicly recognize payers that have met their pledge and issued standardized, machine-readable health ID cards. We will publicly identify those that haven't.
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How much will adopting this technology cost your MGMA members?
A card reader costs less than $200. Practice management system (PMS) vendors tell us that connecting the reader to a PMS is a simple, inexpensive upgrade. We estimate that the current system costs providers as much as $2.2 billion in wasted administrative expenses each year. Eliminating that waste will make these small start-up costs pale in comparison.
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How does this initiative complement or contrast with the health system reform expected under the Obama administration?
It is wholly consistent with the expected Obama effort to reduce administrative costs in our health care system. We’ve invited the secretary of the Department of Health and Human Services to take the lead by asking Medicare to be among the first to pledge to issue WEDI-compliant, machine-readable ID cards.
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Are you calling for legislative action to standardize cards? When will standardized cards be fully implemented?
Some states have already mandated this change through legislation. We are urging the health insurance industry to adopt standardized cards voluntarily. We believe the logic is so compelling that legislation will not be required. However, if voluntary efforts don’t succeed, legislation should be enacted to ensure that change occurs.
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Who needs to get involved and how can they take part in the project?
Insurers, employers, practice management-system vendors, hospitals, medical practices, associations, medical societies and government should all be involved to ensure this effort succeeds.
- Insurers must pledge to issue new cards that are WEDI-compliant and machine-readable.
- PMS vendors must pledge to make inexpensive interfaces available between card readers and their PMS products.
- Employers – self-insured and fully insured – must demand that their health insurers or administrative services organizations issue WEDI-compliant, machine-readable cards.
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Who can I contact for additional information?
MGMA is leading the charge for this effort. If you are an insurer, provider or vendor who wants to get involved, please e-mail us at swipeit@mgma.com.
Visit wedi.org for more information about the WEDI Implementation Guide.
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