What is a Clearinghouse and How Does it Help with Medical Billing?

A clearinghouse acts as an intermediary between providers and payers, electronically transmitting claims and returning responses. Clearinghouses scrub claims for errors before submission, checking for common mistakes that would cause rejections. They translate claims into formats required by different payers, provide real-time eligibility verification, and return electronic remittance advice (ERA) showing payment details. Using a clearinghouse typically reduces rejection rates and speeds up the billing process compared to submitting paper claims directly to payers.