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Understanding and Reducing Claim Denials in Medical Billing

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  Claim denials remain one of the most common and costly challenges in the healthcare revenue cycle. Even with the most advanced systems and experienced staff, denials can happen—affecting cash flow, patient satisfaction, and staff productivity. The good news? Many denials are avoidable with the right tools, processes, and strategies in place. In this blog, we’ll break down what causes claim denials, the different types of denials, and how medical billing software like billrMD can help reduce them significantly. What Are Claim Denials? A claim denial occurs when an insurance payer refuses to reimburse a provider for services rendered. Unlike claim rejections (which are returned before processing), denials are processed but not paid due to specific issues. Common Reasons for Claim Denials: Incorrect patient information (e.g., spelling errors, wrong date of birth) Invalid or outdated insurance details Missing or incorrect coding (CPT, ICD-10, or HCPCS) Lack of pr...