ST. PAUL, MN – Minnesota is set to become the first state to require all healthcare providers to electronically submit insurance claims to health plans using a single set of data standards.

Referred to as the E3 Initiative, the law is designed to streamline three major components of the billing process: eligibility, claims and payment and remittance advice.

The Administrative Uniformity Committee (AUC), a broad-based group representing Minnesota's healthcare public and private payers, hospitals, physicians, other providers and state agencies, is working with the Minnesota Department of Health to streamline the three major components of the new law.

The law requires that changes take effect in three phases in 2009; the eligibility provision took effect on January 15, while claims submission is due to begin on July 15 and remittance advice should begin December 15.

State officials claim this statewide mandate could reduce costs by more than $60 million this year.

Minnesota's health plans have contracted with Piscataway, N.J.- based IGI Health to offer healthcare providers MN E-Connect, a Web-based portal that will help them comply with the new law. 

MN E–Connect is funded by Minnesota health plans at no cost to providers and may be used by any provider, regardless of size. The Web service allows providers to file three free claim types – medical, hospital and dental.

"IGI presented a solution that met our most critical requirements: MN E-Connect is easy to use, even for providers who have limited technical resources – and can also meet the needs of rapidly changing offices, hospitals and payer systems," said Julie Brunner, executive director of the Minnesota Council of Health Plans. "The technology is straightforward, cost-effective and interoperable. Interoperability is key – health plans were already conducting electronic billing transactions – ORBIT provides access to payer systems to all providers."

Participating health plans, including Blue Cross and Blue Shield of Minnesota, FirstPlan of Minnesota, HealthPartners, Medica, Metropolitan Health Plan, PreferredOne, Sanford Health Plan and UCare, are offering this to accommodate more than 60,000 smaller providers who may not be able to meet the July 15 deadline.

"We're excited that Minnesota has chosen ORBIT as the engine to fuel innovative health care reform," said Arthur Kapoor, CEO of IGI. "This move positions Minnesota healthcare providers and health plans as leaders in streamlining back office operations, turning their vision for the electronic exchange of health information into reality."