Health systems and medical practices are facing significant financial challenges as payers increasingly use requests for additional information to delay payments. According to Kodiak Solutions, this tactic has led to billions of dollars in stalled claims, raising concerns about the broader impact on healthcare providers.

Between 2022 and 2024, the rate of initial claim denials due to requests for information (RFI) increased by nearly 9%, as reported by Kodiak on August 8. Kodiak Solutions, which tracks revenue cycle data for over 1,900 hospitals and 250,000 physicians nationwide, noted that in just the first five months of 2024, $6 billion in claims were delayed. If this trend continues, the delays could reach $14.4 billion by year’s end, compared to $11 billion in 2022.

Interestingly, the surge in RFI denials doesn’t appear to reflect a decline in claim quality. In 2023, insurers ultimately paid 88% of the total billed charges that were initially denied—35% more than in 2022. This suggests that payers may be using RFI denials to intentionally slow down payments.

Colleen Hall, Kodiak’s Senior Vice President of Revenue Cycle, highlighted the burden this places on providers, who must cover costs upfront while waiting for payment. The report also revealed that Medicaid had the highest RFI denial rate at 9.23%, followed by commercial payers at 8.14%, with Medicare at 0.46%.

For further insights, read the full Kodiak Solutions report here.