CPB Certified Professional Biller Certification Practice Exam

What does EDI stand for in healthcare transactions?

1. Emergency Data Interchange

2. Electronic Data Interchange

3. Electronic Document Integration

4. Electronic Diagnostic Information

The correct answer is: Electronic Data Interchange

The term EDI in healthcare transactions stands for Electronic Data Interchange. This is a crucial technology that enables the electronic transfer of business information between healthcare entities in a standardized format. EDI facilitates the processing of numerous types of transactions, such as claims submission, eligibility checks, and payment remittance. By utilizing EDI, healthcare providers can streamline their administrative processes, reduce errors associated with manual entry, and improve overall efficiency in the delivery of services. The role of EDI in healthcare cannot be understated, as it enhances communication between payers and providers, ensuring that crucial information is available promptly and accurately. Electronic Data Interchange supports various health care formats, such as HIPAA-compliant transactions, further showcasing its significance in maintaining data privacy and security. The other options do not accurately represent the standard terminology used in healthcare regarding electronic transactions. This reinforces the importance of understanding EDI as the correct and widely accepted term in the industry.