Alert: 3,700+ e-Bills for 98 Claims Administrators Missing or Late 277 ACKs

May 16, 2022 5 min read

By: the daisyNews Team

Alert: 3,700+ e-Bills for 98 Claims Administrators Missing or Late 277 ACKs

Data Dimensions (formerly WorkCompEDI) is a clearinghouse which accepts and responds to providers’ electronic bills on claims administrators’ behalf. For nearly 100 claims administrators, Data Dimensions failed to compliantly respond to thousands of provider e-bills.

The California Division of Workers’ Compensation (DWC) requires the claims administrator, upon receipt of an e-bill, to either accept the e-bill as complete or reject the e-bill as incomplete. Within 2 working days of receiving an e-bill, the claims administrator (or its clearinghouse) must send the provider an electronic ‘277 Acknowledgment’ alerting the provider that either:

The e-bill submission was received and accepted for processing by the claims administrator, or
The e-bill was rejected and will not be processed by the claims administrator.

As of this writing, Data Dimensions has failed to timely send 277 Acknowledgments (277 ACKs) for thousands of e-bills, on behalf of 98 different claims administrators.

On 5/10/2022, daisyBill contacted Data Dimensions to report this critical issue. Without the 277 Acknowledgment, providers cannot know whether their e-bill was accepted or rejected for processing. As of 5/16/2022, this e-billing non-compliance remains unresolved.

The table below lists the claims administrators that are failing to adhere to California e-billing regulations, as well as the count of e-bills for which the required 277 Acknowledgment was late or is missing.

California Medical Billing and Payment Guide Section 7.1 requires a claims administrator to respond to a provider’s e-bill with a timely 277 acknowledgment. California law and regulators hold the claims administrator responsible for e-billing non-compliance, even if the failure lies with a clearinghouse, bill review, or other vendor. Per the DWC Electronic Medical Billing and Payment Companion Guide:

Billing agents, electronic billing agents, third party administrators, bill review companies, software vendors, data collection agents, and clearinghouses are examples of companies that may have a role in electronic billing. Entities or persons using agents are responsible for the acts or omissions of those agents executed in the performance of services for the entity or person. [emphasis added]

When a claims administrator fails to adhere to California e-billing requirements, daisyBill notifies our clients by appending a Non-Compliance Alert to the Bill History for each e-bill affected by the EDI error, as shown below.

5/16/2022

Details
Claims Administrator(s)	98 Claims Administrators - See list below
Clearinghouse	Data Dimensions
277 ACK Missing Count	1,957 (as of 5/16/2022)
277 ACK Late Count	1,768 (as of 5/16/2022)

In May, daisyBill discovered that 98 claims administrators failed to send a X12C/005010X214 Health Care Claim Acknowledgment (or ‘277 ACK’ for short) within the mandated two working days. All e-bills submitted by daisyBill clients were EDI compliant.

For all these claims administrators, Data Dimensions is the designated clearinghouse.

daisyBill alerted the clearinghouse as to the 277 ACK missing error (For more information, read How to e-Bill: 277 "Receipts" Empower Providers).

daisyBill is closely monitoring these e-bills and anticipates the claims administrators’ clearinghouse will accept the e-bills for processing and issue the mandated 277 ACK.

The table below summarizes daisyBill’s persistence in monitoring the EDI non-compliance and making sure the entities responsible resolve the error.

🌼 As of now, daisyBillers do not need to take any action regarding this EDI non-compliance. On your behalf, daisyBill will closely monitor the situation until the underlying issue is resolved, and resubmit affected e-bills where necessary. Have a Flower Power Day!

Date	Action
5/10/2022	daisyBill discovers over 2,000 submissions with missing or late 277 ACK for 83 claims administrators. daisyBill reports EDI error to Data Dimensions, the designated clearinghouse for all 83 claims administrators.
5/11/2022	daisyBill reports additional submissions with missing 277 ACK to Data Dimensions.
5/11/2022	Data Dimensions replies: “I am reviewing this item with IT and will be in touch shortly with an update.”
5/15/2022	Count of missing 277 ACKs increases to over 3,719 for 98 claims administrators.
5/16/2022	Count of late 277 ACKs received: 1,768. Missing 277 ACKs: 1,957

Claims Administrator	Non-compliant 277 ACKs
Sedgwick Claims Management Services	940
Tristar Risk Management	265
Keenan & Associates	223
Cannon Cochran Management Services Inc.	218
Athens Administrators	204
ESIS, Inc.	163
Adminsure, Inc.	146
LWP Claims Solutions	109
City of Los Angeles (CA)	80
Acclamation Insurance Management Services	77
Republic Indemnity	75
City of San Diego (CA)	71
CompWest Insurance Company	68
Los Angeles County Metropolitan Transit Authority (CA)	63
Farmers Insurance	61
Benchmark Insurance Company	57
Marriott Claims Service Corp	50
Markel First Comp Insurance	49
California Insurance Guarantee Association	49
Omaha National Group	46
Midwest Insurance	45
Homelink Network	40
CNA Insurance	40
Meadowbrook Insurance Group	29
Beta Healthcare Group Risk Management Authority	29
American Claims Management, Inc	29
Albertsons / Safeway / Vons	29
County of San Bernardino (CA)	28
County of Santa Clara (CA)	27
County of San Diego (CA)	25
Advantage Workers Compensation Insurance Company	25
Self-Insured Schools of California (CA)	23
Crum & Forster	21
Nassco / General Dynamics	16
Disneyland Resorts California	16
Tokio Marine Management	14
National Interstate Insurance	14
Intercare Holdings Insurance, Inc.	13
Charles Taylor TPA	13
Pegasus Risk Management Services	11
Nationwide Agribusiness Companies	10
Elite Claims Management	10
Creative Risk Solutions	10
American Equity Underwriters	9
United Heartland	8
Nationwide Insurance Companies	8
Contra Costa County Risk Management (CA)	8
City of Los Angeles Department of Water and Power (CA)	8
Schools Insurance Authority (CA)	7
Redwood Empire Schools Insurance Group (CA)	7
Midwestern Insurance Alliance	7
Broadspire	7
Association of California Water Agencies JPIA	7
Cottingham & Butler Claim Services, Inc.	6
City of Riverside (CA)	6
Underwriters Safety and Claims	5
Sempra Energy Employee Care Services	5
Murphy and Beane	5
Municipal Pooling Authority (CA)	5
Contra Costa County Schools Insurance Group (CA)	5
City of Burbank (CA)	5
City and County of San Francisco (CA)	5
Amerisure	5
North Bay Schools Insurance Authority (CA)	4
Fresno Unified School District (CA)	4
Workers' Compensation Administrators, LLC	3
SPNet Network	3
National Casualty Company	3
Great West Casualty Company	3
Golden State Risk Management Authority (CA)	3
Constitution State Services	3
Brentwood Services Administrators, Inc.	3
Alternative Service Concepts	3
Sierra Pacific Industries	2
Ryder Services Corp	2
AccidentFund	2
Warner Brothers	1
Vanliner Insurance Company	1
Trindel Insurance Fund	1
The Cincinnati Insurance Company	1
The Black Car Fund	1
The Arizona School Alliance for Workers' Compensation, Inc.	1
Southern California Edison	1
Risico Claims Management, Inc.	1
Nordstrom Workers' Compensation	1
Loma Linda University (CA)	1
Harford Mutual Insurance Company	1
Garden Grove Unified School District (CA)	1
Eberle Vivian	1
City of Torrance (CA)	1
City of San Jose (CA)	1
City of Compton (CA)	1
City of Anaheim (CA)	1
Auto-Owners Insurance Company	1
Arrowpoint Capital	1
ArcBest	1
Applied Underwriters	1
ACCG - GSIWCF	1
Total	3,719

daisyBill fights the good fight on behalf of workers’ comp providers. Reach out to see how we can help your practice obtain fast, correct reimbursement for treating injured workers.

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