In 2003, our National Coordination of Benefits (COB) Cost Analysis found a 21.7%  error rate in finding primary coverage by both providers and corporate fiduciaries.

This translated to a waste of $1,100 per insured employee every year – stockholder property that would affect many share prices in meaningful ways.

Among the corporate plan sponsors tested, Bethlehem Steel sank into bankruptcy and was liquidated while paying $25 Million per year in claims that rightfully belonged to other health plans. More recently, Ford Motor Company began auditing their employee health insurance rolls in 2000 and have pared more than 60,000 ineligible dependents since then. At Ford's average cost of $6,350 per insured member, the potential for loss from false claims could have run into millions of dollars.

The solution to this problem was first recommended by the Workgroup for Electronic Data Interchange (WEDI) in 1993. This organization was created to improve the quality of healthcare through effective and efficient information exchange and management. Their development of a "standard transaction" became the foundation for electronic exchange of health claims information.

In testimony before the Senate Finance Committee in 1995, the Deputy Director of OMB stated: "We envision an on-line, up front query system in which the primary and secondary payers will be determined at or before the time that care is provided...."

Companies that self-fund their health plans need to assure their stockholders that no dollar is spent until they are absolutely certain that no other health plan is primary. This can only be done through an automated, pre-emptive primacy test.

Digital Healthcare’s patent-pending processes eliminates the errors that waste your company’s health trust funds and gives corporate officers yet another layer in safeguarding their fiduciary trusts.