Observance Solutions
Revenue Cycle & Claims

How AI Can Review Healthcare Claims Before Submission and Identify Potential Errors

Observance Solutions Engineering7 min read

Most claim denials are preventable, and preventable in ways that don't require clinical judgment - a missing modifier, an expired authorization, a diagnosis-procedure mismatch. That's exactly the kind of pattern AI-based pre-submission review is well suited to catch.

What pre-submission review is checking for

Traditional claim scrubbing already checks structural validity (required fields present, valid code formats) and payer-specific edit rules. An AI-based layer on top of that adds pattern-based checks that are harder to express as static rules: whether a diagnosis code plausibly supports the billed procedure (a mismatch between what's documented and what's billed is a common, avoidable denial reason), whether documentation in the record actually supports the level of service billed, and whether a prior authorization that this payer requires for this procedure is on file and still valid before the claim goes out.

Where this catches problems traditional scrubbing misses

Static rule-based scrubbing is good at 'is this field present and correctly formatted' and weaker at 'is this combination of diagnosis, procedure, and documentation internally consistent and plausible' - the second category benefits from a model that's seen enough real claim/documentation pairs to recognize when something doesn't line up, even when every individual field is technically valid.

Missing or expired prior authorization is a particularly high-value catch: it's a completely preventable denial reason, it's checkable in principle before submission (if your platform tracks authorization status), and it directly ties pre-submission claim review to the prior authorization workflow rather than treating them as unrelated systems.

Designing this so it helps rather than adds noise

Flag issues with a specific, actionable reason (not just 'this claim looks risky') and route flagged claims to a biller for review rather than auto-blocking submission - a system that silently holds claims without a clear, correctable reason will get worked around or ignored. Track false-positive rates by flag type over time; a check that generates mostly false alarms trains staff to ignore all flags, including the real ones.

Where this fits in the overall claims workflow

Pre-submission AI review is most valuable as a final gate immediately before submission, after coding is finalized and prior authorization status is known - not earlier, when the claim data is still incomplete, and not instead of, but alongside, standard payer-specific edit rules and eligibility verification. Think of it as one more layer in a defense-in-depth approach to denial prevention, not a replacement for the earlier layers (accurate coding, verified eligibility, confirmed authorization).

FAQ

Quick answers

Standard scrubbing checks structural validity and payer-specific formatting rules against static rule sets. AI-based review adds pattern-based checks - like whether a diagnosis plausibly supports a billed procedure, or whether documentation supports the billed service level - that are harder to express as fixed rules and benefit from having seen many real claim/documentation pairs.

Have a project like this in mind?

Tell us what you're building. A senior healthcare technologist — not a salesperson — will get back to you within one business day.