What is a common consequence of errors in medical coding?

Errors in medical coding can lead to claims denials and delayed payments because accurate coding is essential for the proper processing of insurance claims. When a medical service or diagnosis is coded incorrectly, it can result in the insurance company rejecting the claim or requesting additional information for clarification. This not only hinders timely reimbursements but can also create administrative burdens as healthcare providers work to correct the errors and resubmit the claims. Ensuring accurate coding is crucial for maintaining cash flow for healthcare facilities and ensuring that they can receive payment for services rendered in a timely fashion.