Answer to Question 1
Paper claims have to be rekeyed into the insurance plan's computer. This can introduce errors. With electronic claims the payer gets exactly what the provider sent.
Electronic claims can be validated by the computer before sending by claim scrubbing software that ensures the claim meets the required edits.
Electronic claims take less time to process at the payer; the provider will be paid sooner.
Electronic claims save the cost of forms, printing, handling, and postage.
Answer to Question 2
HPI