Home How To Become EDI 270/271 Capable: A Comprehensive Guide

How To Become EDI 270/271 Capable: A Comprehensive Guide

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EDI 270/271 Capable

Insurance is an inseparable part of the healthcare industry. While they both have their clientele and industry measures, they are equally indulged with each other as every citizen has insurance to take care of their health requirements. This ideally means that the players from both industries have to stay connected, so EDI in insurance present the ultimate solution. How? Well, what do you think is the most fundamental reason for contact among healthcare providers and insurers? For healthcare facilities, it is to understand what kind of benefits an individual has, while for insurance companies, it is to know the requirements of their insured clients. 

Both the above-mentioned tasks can be easily carried out and made smooth with the help of EDI 270 271. These can also be done manually but then again the quality of the information can be compromised don’t forget to calculate the loss of resources and time that it will take to gather all the information. People are often aware of the benefits that they can get after implementing EDIs but they struggle with getting started in the first place. 

How to become EDI capable? What are the steps required to acquire the powers of EDI 270/271? And finally, what should be your plan of action to make the most out of these available resources? Do not worry as in this post, you will get all your answers and information that will not only help you become EDI 270/271 ready but will also bring an array of positive changes to the way your organization works. Before we get into the depth, let us quickly get an overview of what exactly EDI 270 and 271 are all about. Without further ado, let’s jump straight into the next section!

EDI 270/271: An Overview of How it Works

The EDI transaction 270 is done from the healthcare facility to the insurance providers to understand exactly what type of benefits an individual has. Before treating a patient, they need to stay assured what kind of case is going to be as the other arrangements are made on that basis. The EDI 270 requests the insurance provider of the patient to share preliminary details about the patient’s insurance cover, which includes the following pointers – 

  1. Eligibility of the Patient for the Services 
  2. Details of the Insurance that the Patient Holds
  3. Overview of Benefits that the Patient can Avail.

These 3 pointers are the foundation of any sort of insurance claim that can be made concerning the healthcare industry. The EDI 270 transaction established the grounds for the experts to understand the type of service that the patient is eligible for and them. 

If we talk about transaction 271, it is just the counterpart of this exact transaction but from the insurer’s point of view. After receiving the queries in transaction 270. The insurance provider collects the data available and shares it with the experts with the help of transaction EDI 271. You can say that EDI 270/271 transaction is a complete process that takes place from both ends hence, EDI in healthcare is also important. 

How to Equip EDI 270/271? The Best Practices to Become EDI Capable 

Now that you understand how exactly EDI 270/271 works and the importance of these transactions, the question that arises here is how to become EDI 270/271 capable at your capacity and make the most of the available resources. The answer to that question is simple and complex at the same time. It is simple because you can easily get yourself the EDI integration by connecting with an EDI service provider. All you have to do is look for the best available option that suits your needs and let the experts take care of the rest. 

It is also a complex process as you do not know what exactly is the best option for your requirements. You may get confused while choosing a name for the implementation of EDI at your facility after finding out that there are hundreds of service providers in the market catering the same services. Not to mention, there are multiple ways to get your EDI implemented. You can either get your EDI located in your personal space where you can simply go for a legacy EDI system that needs a proper system and administrator to handle. 

Or you can go for EDI managed services and get over the hassle without having to dedicate a system for the same. Having an on-premise EDI system has its advantages and disadvantages and the same goes for cloud-based resources. The decision often depends on what sort of environment you aim to create for your organization and how much you can invest in the technology.

 If you are looking for flexibility and money is a constraint for you, going with a cloud EDI integration can help you get equipped with the EDI 270/271. However, if you want to go for a traditional system and money is not a constraint for you to work, you can also go for an established EDI at your premise. Once you have established a system and network, the EDI capability comes with three important steps. These are – 

Step 1 – ERP Integration 

The first thing that EDI needs is integration with your ERP system or any other system that you are using to filter your communication. This integration allies the system to gain access to important information that can be used to make the process automated. With this integration, you are on the first step of creating an automated EDI transaction channel that can use the information as per requirement. It can be easily achieved with the help of EDI outsourcing as well as hiring experts for the same.

Step 2 – Conversion Software 

The next step is to choose the EDI software with the help of which you can encode and decode messages from transaction sets. The software helps you go global. Multiple formats are being used in the field and you do not have to worry about any of those. When you receive an EDI request, the software will convert it into a standard message for you to understand and when you send a message, the EDI software will automatically convert it to the standardized format for the receiver.

Step 3 – Communication Network 

EDIs do not use your regular wifi networks as they require centralized data transmission. EDI networks are usually VAN-oriented and use a special value-added network to make sure the connection is flawless and has seamless availability. The fast nature of EDIs is what makes them helpful in the healthcare and insurance fields and these speeds are achieved with the help of EDI solutions and VAN. 


These 3 steps once implemented make you EDI capable in all forms. Being from any of the fields, be it healthcare or insurance, you must have the best connectivity to establish the network. The customers require a seamless experience every time they visit any of the centers. Using EDI 270/271 reduces all the headaches of the customer who would have to manually show papers and give remittance advice to the healthcare service provider to get the best results. Thanks to EDI, the hassle is nothing to worry about. 

Author Bio:

Scarlett works with the editorial team of A3logics, a leading company offering EDI Solutions. Exploring the latest technologies, reading about them, and writing her views have always been her passion. She seeks new opportunities to express her opinions, explore technological advancements, and document the details. You can always find her enjoying books or articles about varied topics or jotting down her ideas in a notebook.

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