Insurance

Reducing $200B Medical Overbilling Challenge with Protecto

Discover how Protecto's secure AI-powered solution helped a leading insurer reduce medical overbilling by $10 million annually while ensuring full PHI data protection compliance. Learn more!
$10M+
Projected Yearly Savings

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$200B
Annual cost of medical claim overbilling addressed
10X
Reduction in data exposure risk
$10M+
Savings projected customer savings in first year

The challenge

Combatting Inaccurate Billing Practices in the Healthcare System

Medical billing errors, such as upcoding, unbundling, and incorrect coding, cost the U.S. healthcare system over $200 billion each year. These errors create a financial burden on patients, insurance companies, and healthcare providers alike. The insurance provider needed a solution to detect and address these errors accurately while ensuring compliance and protecting patient data privacy.

  • Upcoding: Billing for a higher-level procedure than was performed.
  • Unbundling: Separating comprehensive procedures into individual claims.
  • Incorrect Coding: Human errors or intentional misrepresentation causing overbilling.
  • Data Privacy Concerns: Risks associated with handling sensitive PHI data.
  • Complex Billing Procedures: Challenges in accurately translating medical services to standardized codes.
Insurance

Protecto enabled us to safely process claims data with LLMs without compromising privacy or accuracy, transforming our billing verification process.

$10M+
Projected Yearly Savings
Leading Insurance Provider
The solution

Privacy-Preserving RAG for Medical Claims

Using advanced data protection and AI to streamline medical billing.

01

Ground Truth Dataset Creation

  • Curate detailed clinical notes
  • Map notes to accurate billing codes
  • Regularly update dataset integrity
02

Sensitive Data Masking

  • Detect PHI in claims data
  • Mask data without losing usability
  • Keep data consistent across sessions
03

AI-Powered Similarity Search

  • Convert notes to vectors for analysis
  • Run real-time similarity checks
  • Identify patterns in billing errors
04

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The results

Realizing Millions in Savings While Safeguarding Patient Data

Successfully implemented secure, AI-powered billing verification system to combat $200 billion in medical overbilling. By ensuring PHI compliance through advanced data masking and using AI-powered billing validation, Protecto enables accurate, efficient claims processing while protecting patient data privacy.

Key achievements

  • $10 Million Savings: Projected annual savings from improved claim accuracy.
  • 50% Reduction in Billing Errors: Through automated validation and secure data handling.
  • Zero Data Privacy Violations: With full compliance and data protection for PHI masking.
  • 20% Faster Claims Processing: Streamlined workflows reduce processing times for insurers.
  • Improved Data Integrity: Consistent, accurate insights preserved even after data masking.
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