Health insurer to use IBM's automated claims processing

Empire BlueCross BlueShield will be the first customer of IBM's automated claims reading and processing service, IBM announced Thursday.

IBM said the service will use application software from Lexington, Mass.-based deNovis Inc. running on an IBM e-business infrastructure.

"The deNovis software has the ability to electronically read policy statements, rules and regulations and make appropriate payments automatically," according to an IBM statement. "This ability enables carriers to offer customized policies tailored to each family member."

Empire Blue Cross and Blue Shield has 4.7 million subscribers. If the product is successful, IBM hopes it will be adopted by other health insurers across the country.

DeNovis, a health-care application service provider, was previously known as eHealthDirect.

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