CPB Certified Professional Biller Certification Practice Exam

What is a primary function of Electronic Data Interchange (EDI) in healthcare?

1. Facilitate manual paperwork processing

2. Automate the exchange of healthcare information

3. Limit data access for security reasons

4. Schedule appointments for patients

The correct answer is: Automate the exchange of healthcare information

The primary function of Electronic Data Interchange (EDI) in healthcare is to automate the exchange of healthcare information. EDI streamlines communication between different healthcare entities, such as hospitals, insurance companies, and providers, by enabling them to send and receive structured data electronically. This automation improves efficiency, reduces the potential for errors associated with manual data entry, and accelerates the processing of transactions such as claims, eligibility checks, and payment remittances. By leveraging standardized formats for data exchanges, EDI supports faster and more reliable interactions within the healthcare system. The other options represent tasks that are either not aligned with the core purpose of EDI or are secondary functions. For instance, while limiting data access for security reasons is vital for compliance and protecting patient information, it does not capture the central role of EDI, which is focused on seamless data transfer. Similarly, EDI does not facilitate manual paperwork processing, as its main goal is to reduce such manual tasks. Lastly, scheduling appointments for patients is a separate administrative function that typically involves other systems or platforms, rather than the core data exchange facilitated by EDI.