Overpaying in the Dark: Hidden Costs Undermining Payer Profitability—And How to Fix Them

August 7, 2025

Jonathan Jeffress, Chief Operating Officer

Originally published by Healthcare IT Today. Republished with permission. AMPS is a proud sponsor of Healthcare Scene.

Executive Summary

Payers are losing millions annually due to hidden overpayments—particularly in high-dollar claims. Traditional policy edits alone are not enough to catch nuanced or clinically complex errors. By integrating physician-led prepay reviews, advanced clinical logic, and tools like ClaimInsight, payers can prevent losses before they happen and restore both employer trust and margin confidence.

The Cost of Outdated Defenses

Automation and policy-based claim checks leave gaps. Payers remain exposed to billing errors, miscoding, and medically unnecessary treatments. These blind spots lead to billions in losses each year—jeopardizing financial health and organizational credibility.

Why Prepay + Clinical Review Is the Winning Formula

A modern, clinically focused approach to payment integrity includes:

  • Advanced clinical logic that identifies inappropriate billing
  • AI-assisted risk detection to spot high-risk claims
  • Physician-led reviews of ambiguous or complex claims

This shift from post-pay recovery to proactive prepay prevention changes the game—and protects the bottom line.

ClaimInsight by AMPS: Smarter Payment Integrity

ClaimInsight enables payers to:

Payers using ClaimInsight have reported savings of up to $5 million per 100,000 members annually.

Action Plan for Payers and TPAs

  1. Audit blind spots in your current claims review process
  2. Incorporate clinical expertise into your prepay workflows
  3. Shift to prevention-focused payment integrity strategies
  4. Balance oversight with provider collaboration to minimize friction

About the Author

Jonathan Jeffress is Chief Operating Officer at AMPS, where he leads operations, product development, and IT strategy. With over 25 years of experience in healthcare operations, claims delivery, and cost containment innovation, Jonathan helps clients navigate the evolving landscape of payer performance and integrity.

This article was originally published by Healthcare IT Today and is republished here with permission. AMPS is a proud sponsor of Healthcare Scene.

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