Clean Claim
A claim that passes all payer edits on first submission without errors. Clean claims get paid faster and cost less to manage.
Clean Claim Explained
A clean claim is one that passes every payer edit on first submission and is adjudicated without additional information requests, denials, or rejections. Industry average for clean claim rate is 85-90%. Top-quartile practices and specialized billing teams hit 96%+ clean claim rates. The difference is direct dollars: a clean claim costs roughly $3 to process, while a denied claim costs $25-118 to rework according to CAQH and MGMA data — and 65% of denied claims are never resubmitted at all because the labor cost exceeds the claim value. A 10-percentage-point improvement in clean claim rate on a practice billing $1.5M annually recovers $30-80K in margin per year through reduced rework labor alone, before counting the additional revenue from claims that previously aged into write-off territory. Clean claim rates depend on three foundations: real-time eligibility verification 48-72 hours before service (kills CO-4 and PR-1 denials), payer-specific clean-claim scrubbing rules that catch missing NPIs, taxonomy codes, NDCs, CLIA numbers, and place-of-service codes (kills CO-16 denials), and AAPC-certified coding with NCCI edit checks before submission (kills CO-97 bundling denials). Practices that hit 96%+ clean claim rates do all three systematically — practices stuck below 90% typically have a gap in one of the three.
See Also: Related Concepts
Denial
A claim that a payer refuses to pay. Common reasons: eligibility issues, missing authorization, coding errors. Each denial costs $25-$30 to rework.
First Pass Rate
Percentage of claims accepted and paid on first submission. Industry average is 85-90%. Go Medical Billing clients see 96%+.
Eligibility Verification
Confirming a patient's insurance coverage, benefits, deductibles, and copays before the date of service.
Clearinghouse
An intermediary that receives claims from providers, scrubs them for errors, and forwards them electronically to the appropriate payer.
Adjudication
The process by which an insurance payer reviews a submitted claim, determines coverage, and decides how much to pay.
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