Why Paper Claims Aren’t Going Away – And What To Do About It

12 Jan Why Paper Claims Aren’t Going Away – And What To Do About It

For years, the insurance industry has predicted the end of paper claims. As electronic submission tools improved, many assumed paper submissions would naturally fade away.

In practice, that just hasn’t happened.

At ICS, we work with dental and health plans across the country, and paper claims continue to represent a meaningful portion of overall claim volume. While electronic adoption has grown, paper has remained remarkably consistent, and in some cases, even increased during periods of staffing changes, system transitions, or electronic submission uncertainty.

The reality is simple: paper claims are not going away anytime soon and its time to optimize how you handle them.

Why Paper Still Exists

There are several practical reasons paper continues to show up in plan mailrooms.

Many providers are small, independent practices with limited administrative staff. Paper remains familiar, reliable, and easy to use. Even providers that submit electronically will often revert to paper when dealing with corrected claims, unusual procedures, or required attachments like narratives or images.

Provider turnover also plays a role. New hires, temporary staff, or practice changes often disrupt electronic workflows, and paper becomes the fallback.

Add in variations between clearinghouses, plan requirements, and submission rules, and it becomes clear why paper persists despite continued investment in digital tools.

The Real Challenge Isn’t Paper — It’s How Paper Is Handled

Paper claims become a problem when they rely on manual data entry, inconsistent imaging, and limited quality control. These issues lead to higher error rates, longer turnaround times, and lower auto-adjudication rates.

When paper intake is poorly managed, downstream systems suffer and touchpoints rise, only increasing the cost of handling paper claims.

When it is handled correctly, paper can be just as clean and reliable as electronic submissions.

How Plans Improve Outcomes Without Eliminating Paper

Plans that perform well in this area tend to focus on a few key principles:

• Accurate data capture using a combination of OCR/AI and human verification
• Standardized imaging and formatting so adjudication systems receive consistent input
• Early quality control to catch issues before claims reach core systems
• Intelligent routing and classification to reduce manual handling
• Member and Provider Database Matching to reduce rework over time

These changes don’t eliminate paper, but they significantly reduce the friction associated with it. Many plans see meaningful improvements in auto-adjudication and processing efficiency simply by modernizing intake workflows.

Where ICS Fits In

ICS works with dental plans, health plans, and government agencies to manage high-volume paper intake in a way that supports automation rather than slowing it down.

Our approach combines technology with experienced staff and layered quality controls, all within a highly secure and compliant environment. Instead of forcing clients into a one-size-fits-all model, we build workflows around each organization’s specific requirements.

The result is cleaner data, fewer downstream issues, and faster, more predictable processing.

Final Thought

Paper claims aren’t going away — but the inefficiencies often associated with them don’t have to stay.

Plans that treat paper as a permanent part of their operation, and invest in handling it well, are better positioned to control costs, improve turnaround times, and support long-term growth.