Navigating the complexities of billing as an ABA provider is no easy feat. Errors in CPT code usage, missing and incorrect information, and overutilized authorizations can result in denied claims and payor audits. Even a minor mistake can raise red flags and increase payor scrutiny.
Payor audits can lead to significant financial losses, including thousands of dollars in denied or recouped funds, months of delayed revenue, and hundreds of hours of non-billable administrative time. Considering these factors, it’s easy to see how payor audits can strain ABA practice resources and harm financial viability
Advancements in AI-driven technology are revolutionizing the billing workflow, drastically improving clean claims and reducing audits. Automation in this process ensures compliance while taking a burden off clinical and administrative teams.
Challenges in ABA Billing
ABA billing requires meticulous attention to detail. Many payors have begun utilizing AI technology to audit claims, resulting in a heightened likelihood of catching errors and missing information, and therefore denying more claims.
Let’s uncover some of the most common billing challenges that come with steep financial consequences for ABA practices through denied claims and failed audits.
- Differences in payor requirements–Many providers find it challenging to stay on top of the variations in payor requirements. While there are some similarities in billing from payor to payor, there are also differences in what each funder requires.
- Proper use of CPT codes–Incorrectly using CPT codes, whether intentional or not, can result in denied claims and increased payor audits. It’s important to fully understand how each code is intended to be used and keep up with updates to coding standards.
- Incomplete or incorrect information–Errors in information (e.g., client’s name, provider credentials) or missing requirements can result in an automatic denial.
- Manual workflows–Manual billing processes place an undue administrative burden on ABA practices, increasing the risk of error.
- Evolving regulations–Funder requirements can change over time. Failure to adapt to these changes can lead to payor non-compliance.
- Lack of billing oversight–Without internally auditing claims, errors can slip through the cracks. Despite these risks, ABA practices often struggle to find the time and manpower to efficiently conduct pre-billing audits.

The Importance of Internal Claims Auditing
One of the most critical ways to improve clean claims and reduce audit risk is by internally auditing claims. However, many ABA providers don’t have the manpower, resources, and efficient workflows in place to effectively catch and correct claims errors before they’re submitted to the payor. This results in a high likelihood of denials, along with elevated payor scrutiny.
Failing to conduct internal claims audits puts ABA practices at a heightened risk for:
Most ABA practices see a 15-19% claims denial rate, leaving substantial revenue on the table. Denials not only drain administrative resources but also delay revenue by 30–90 days, harming cash flow. For a practice submitting hundreds of claims per month, the cumulative impact can mean thousands of dollars in delayed or lost revenue.
When clinicians, billers, or other admin staff identify errors in claims during a manual audit, the next steps in the workflow are often time-consuming and disjointed. The error must be rerouted to the appropriate person for corrections to be made. The team also needs to track the corrections and analyze trends to inform future changes. When an ABA team operates with disintegrated systems, error corrections tend to be missed or delayed and staff continue perpetuating the same errors, exacerbating audit risks.

Harnessing AI for Cleaner Claims Processing
Innovative AI technology is making waves throughout the healthcare field. As funders are increasingly using AI to audit claims, ABA providers are leveling the playing field with the use of AI-driven internal billing audits. Internally auditing claims using AI can drive significantly higher rates of clean claims by ensuring claims are error-free before submitting them to the payor.
AI-boosted claim checks integrated within your practice management solution offer ABA practices many benefits, including:
+10%
Increased
Clean Claims
80%
Less Time Spent On Pre-Claims
3+ Days
Saved On Billing, Improving Cashflow
- Reduction in audits
- Decreased likelihood of clawbacks
- Improved operational efficiency
- Amplification of common billing errors to inform training opportunities and reduce future likelihood of errors
- Increased trust with payors
Improve Compliance & Reduce Your Audit Risk
Improve payor compliance and reduce your audit risk without burdening your clinical team. Automatically improve clean claims to 93%+ with CR ClaimCheckAI.
Posted in AI, Clinical, Practice Management
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