Bill review may be automated through e-billing rules, conducted internally by claims staff, or performed by third-party auditing firms. Auditors apply guideline criteria and reasonableness standards, recommending adjustments.
Firms typically have an appeal right.
Alternative Names:
Legal Bill Audit, Invoice Audit
Why it Matters?
Third-party auditors are compensated in ways that can reward reductions, which is a recognized tension in the practice. Some states restrict outside auditing that would expose privileged narrative detail to a non-party without client consent, and defense counsel should understand whether the insured has consented to third-party review. Appeal rights exist but the time required frequently exceeds the disputed amount.
Frequently Confused with
Related terms
Frequently asked questions
Does third-party auditing raise privilege concerns?
Are appeals worthwhile?
