Medical billing software can be used to bill medical services to private insurance carriers and to Federal plans such as Medicare.  Medicare leads all other health care payers in accepting and processing electronic claims from medical billing software. Medicare receives electronic claims directly from providers or via independent parties (billing agencies) acting on their behalf. In 1998, Medicare received and processed more than 700 million claims. More than 80 percent of these claims were submitted electronically using computer software developed for medical billing. Medicare also received 149 million Part A claims in 1998. Nearly all of which (96-97 percent) were submitted electronically using medical billing software.

Medical billing and practice management software increasingly includes electronic health record features.  These functions meet HIPAA requirements.  Health insurance claims can be submitted electronically, for quicker payment and less hassles.

Medical billing software helps providers manage financial information and reduces errors on claims submitted to Medicare and some 2,800 other insurance companies. Medical billing software can be a standalone function or integrated with other aspects of medical practice such as patient medical records. It can be linked to the laboratory and other ancillary service areas. It can interface with other software that will analyze claims for completeness, accuracy and probability of being edited by Medicare, Blue Cross, or other health insurance. The use of computers and software in the field of medicine is growing rapidly. More and more medical providers are turning to electronic medical records. Ancillary equipment such as x-ray machines, laboratory testing equipment and other patient testing equipment and services will soon be linked electronically to the patient’s medical record.