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Anthem tests high-tech pen for use in online claims submission

Practices are writing claims information with an electronic stylus in an effort that the insurer says should result in speedier reimbursements.

By Robert Kazel — Posted Aug. 23, 2004

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A pen that looks like a plump cigar, scans insurance forms like a digital camera and transmits claims information from medical practices to payers over the Web could get doctors their reimbursements faster if a pilot program by Anthem Inc. proves successful.

The Indianapolis-based insurer planned by the end of July to have distributed the electronic styluses to 20 physician offices in Indiana, Kentucky and Ohio. For the initial experiment, Anthem selected solo physicians who were submitting paper claims by mail, providing them with the free digital pen technology and laptop computers to send the claims via the Internet.

The device, manufactured by Fremont, Calif.-based Logitech, is used like a normal pen but employs an optical sensor to capture whatever is written in ink. It has a rechargeable battery, can store up to 40 pages of text on an internal chip and when idle is kept in a cradle that serves as an interface between it and a personal computer.

Claims form data can be transmitted to Anthem at the end of each day or whenever the pen is left in its holder.

In addition to cutting down on the time it takes to file a claim, the system can reduce paperwork for doctors' staffs and save practices the cost of postage, said Jane Niederberger, chief information officer of Anthem and general manager of the company's Midwest division.

The next step of the experiment later this year will be to bypass the use of an office computer and connect the digital pens to cellular telephones, transmitting the data over a private telephone network right to Anthem, Niederberger said.

The office of Gerold Butler, MD, a pediatrician in Indianapolis, started using the digital pen in late June and so far is noticing a significant reduction in the wait time for payment from Anthem, said Vicki Van Meter, office manager. Paper claims took Anthem between four and six weeks to process and pay, but with the new technology, Dr. Butler is getting checks in about half that time, she said. The practice submits about 30 claims to Anthem per week.

The pen required minimal training, which was provided on-site by Anthem, Van Meter said.

"If you can write, you can do it," she said. "If you can use your personal computer at home, you can do this."

Anthem's motivation to pursue the technology is economic. A paper claim can cost the insurer as much as $2.50 for processing, compared with about 50 cents for a claim transmitted through digital pen. A claim filed by a practice electronically costs less still, but Niederberger said Anthem realizes that many small practices don't see electronic filing as an option for investment. The digital pen, which has a retail cost of around $100, might appeal to them as a middle ground that would save time and paperwork, Niederberger said.

In the future, digital pens might be used by doctors to write prescriptions or by insurance agents in the field to record information on customers, she added.

Anthem hadn't yet decided if it would expand the digital pen program or how soon it might move on to the second phase involving cell phones instead of laptops, she said.

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