Two of the major trade associations in the health insurance industry are piloting a new program in New Jersey aimed at reducing time and expense for physician offices and patients.

America’s Health Insurance Plans (AHIP) and the Blue Cross Blue Shield Association (BCBSA) are sponsoring the initiative, linking major insurers and medical providers in the state to simplify information flow between the health plans and doctors’ offices/hospitals. The groups say the system will do for health care what the ATM did for banks and consumers.

Announced last year, the initiative is also in the pilot program stage in Ohio.

The basis of the program centers on a web portal to share information in a central location, with savings estimated in the hundreds of billions of dollars as all the major players in the health care system achieve efficiencies through one system.

Scott Serota

“This initiative is a great example of collaboration between key stakeholders to help improve the quality and value of our healthcare system,” said Scott P. Serota, president and chief executive officer of BCBSA, in a statement. “Streamlining the administrative process for providers will result in tremendous savings, both in time and resources, and ultimately lead to improved consumer experience.”

The New Jersey initiative is lead by five major health providers that represent more than 95% of state residents with health insurance: Aetna, AmeriHealth New Jersey, CIGNA, Horizon Blue Cross Blue Shield of New Jersey and UnitedHealthcare.

Physician organizations that are collaborating on the project are: Medical Society of New Jersey, New Jersey Academy of Family Physicians, New Jersey Association of Osteopathic Physicians and Surgeons, New Jersey Medical Group Management Association and Partners in Care Corp.

The new system, according to AHIP and BCBSA, replaces a “cumbersome system,” where physician office and hospital staff spend a great deal of time and expense accessing multiple channels to get information including eligibility confirmation, billing and referrals, according to a statement. Instead, the one-stop service electronically delivers that information faster and at less cost.

Thomas Considine, the commissioner-designate for the New Jersey Department of Banking and Insurance, said his agency applauds the initiative “to reduce administrative expenses and slow the growth of health care costs which could ultimately make health care coverage more affordable for New Jerseyans.”

Following the pilot programs in Ohio and New Jersey, AHIP and BCBSA hope to spread the initiative nationwide, but have not announced a timetable for that expansion.