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Glossary · Claims

What is a healthcare clearinghouse?

A clearinghouse is the middle layer between providers and payers. It checks claims, routes them to the right payer, and passes back acknowledgments, status responses and remittances.

Example · fictional data

Clearinghouse batch report

Batch
1201
Sent
03/15/2026 09:30
Claims
5
ClaimPayer999277CAResult
CLM00417Example Health PlanAcceptedA2 acceptedWith the payer
CLM00418Example Health PlanAcceptedA7 rejected: billing NPIFix and resend
CLM00419Example Health PlanAcceptedA2 acceptedWith the payer
CLM00420Sample MedicaidAcceptedA6 rejected: member ID missingFix and resend
CLM00421Sample MedicareAcceptedA2 acceptedWith the payer
  1. Both rejections are invisible unless someone reads the report. The payer never received those claims.
A day's batch report from a clearinghouse. Two claims never reached their payers.

Few providers connect to hundreds of payers one by one. A clearinghouse does it for them: one connection out, every payer on the other side.

What a clearinghouse does

  • Checks claims against format rules and its own edits before they reach a payer, and rejects what would fail.
  • Routes each 837 to the right payer, translating payer IDs and formats where needed.
  • Returns responses: 999s, 277CAs, 276/277 status answers and 835 remittances.
  • Runs eligibility through 270/271 transactions.

What it doesn’t do

A clearinghouse reports problems; it doesn’t fix them. Rejections land in a report or a portal, and someone has to read them, correct the claim and send it again before the timely filing limit passes. Payers that aren’t connected to the clearinghouse still need paper claims or their own portal.

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