Advantages of EDI

The electronic submission of workers’ compensation claim information has many advantages over the submission of paper forms. Benefits for both the Industrial Accidents Division and its stakeholders include:

  • Improved reporting performance
  • Time savings
  • Cost savings
  • Improved accuracy and efficiency

Improved Reporting Performance

Electronic submissions are a much more efficient method to transmit the legally required information and forms on workers’ compensation claims. EDI eliminates any need to prepare and send a paper document to Industrial Accidents through the traditional mail system. Typically, the electronically submitted EDI data are received, processed, and acknowledged within hours of submission. The timely submission of claim information is of primary importance to both Industrial Accidents and the claim administrators.

Time Savings

EDI provides an efficient means of getting the correct information to Industrial Accidents as quickly as possible. Time is saved by eliminating the processing of paper documents that would otherwise be required for both the stakeholder and Industrial Accidents.

Cost Savings

Although there are initial costs involved with designing, developing and implementing a new EDI system, these costs can be recouped and the system can pay for itself many times over by the efficiencies associated with EDI. Sending documents electronically completely eliminates the costs of mailing and handling paper documents. In addition, fewer people are required to monitor and administer the EDI system than are needed to process paper documents. Personnel can then be assigned to other important tasks, at both ends of the electronic transaction.

Improved Accuracy and Efficiency

EDI reduces the error-prone entry of data in computer systems. Further, by immediately verifying and validating the sender’s transaction, the electronic acknowledgement process improves efficiency and accuracy, reducing the time it takes for the trading partner to correct invalid or inaccurate information. Electric data can be sent anytime, day or night, ensuring the efficient and timely delivery of accurate information.

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