CARROLLTON, TX – Preferred Health Technology, Inc., a Carrollton, Texas-based provider of electronic payment and transaction-processing services for the healthcare industry, has announced its support of the Medical Group Management Association’s Project SwipeIT initiative.

The initiative, launched this past January, is designed to push payers to issue a standard member identification card that uses a magnetic strip to read patient insurance information. MGMA officials say the cards could reduce the cost of billing errors currently adding up to about $2.2 billion annually.

The MGMA’s goal for total adoption is January 2010, and the group is looking to rally physician support to install low-cost card readers to access information stored on the cards. Officials say insurers could realize savings from decreased provider inquiries, and that claims requiring multiple processing could be reduced, which would mean reduced labor costs.

From the provider standpoint, healthcare facilities could save revenue by reducing the amount of time clinicians spend on administrative tasks.

"We appreciate the support PHT has given our efforts and encourage payers, providers and vendors to follow suit and make the commitment to eliminating $2.2 billion in waste from our system," said William F. Jessee, MD,  the MGMA's president and CEO.

Aside from Preferred Health Technologies, other organizations supporting Project SwipeIT include Humana, one the nation's largest health-benefit companies, and U.S Bank.

“Project SwipeIT solves that issue and benefits everyone. Patients will have a better experience at the point of care,” said Ralph L. Bernstein, senior vice president of U.S. Bank's Healthcare Payment Solutions division. “Providers will improve their work flow and potentially reduce denied claims. Insurers will deliver greater efficiencies to providers and members.”

The ID cards must be compliant with specific guidelines set up by the Workgroup for Electronic Data Interchange. Upon approval, ID cards that meet the guidelines can be used and read by providers, easing the claims process for the patient, care provider and insurance agency.