The Formulas
| Measure | Formula |
|---|---|
| Clean claim rate | (Claims submitted minus claims rejected) ÷ claims submitted × 100 |
| First pass resolution rate | (Claims submitted minus rejected minus denied) ÷ claims submitted × 100 |
| First pass denial rate | Claims denied ÷ claims accepted × 100 |
A clean claim goes through the clearinghouse and payer edits the first time, with no rejection. A claim is resolved on the first pass when it is also paid without a denial or any rework.
A Worked Example
A practice sends 1,000 claims in a month. 40 are rejected and 70 are denied. The clean claim rate is (1,000 minus 40) ÷ 1,000 = 96%. The first pass resolution rate is (1,000 minus 40 minus 70) ÷ 1,000 = 89%. That is 110 claims to rework. At $25 each, rework costs $2,750 a month, or $33,000 a year.
What Good Looks Like
| Measure | Common target | Needs attention |
|---|---|---|
| Clean claim rate | 95% or higher | Below 90% |
| First pass resolution rate | 90% or higher | Below 80% |
These are common industry targets, not rules. Track your own numbers every month and watch the trend.
Rejections vs Denials
A rejection means the claim never entered the payer's system, usually because of missing or invalid data. You fix and resend it. A denial means the payer processed the claim and refused to pay all or part. You correct it or appeal. Both cost staff time and delay cash.
How to Raise Your Clean Claim Rate
- Verify eligibility before every visit. Coverage errors such as CO-31 are the most common rejections.
- Run every claim through a claim scrubber, and fix the edits before sending.
- Check NPI, taxonomy and tax ID against each payer's records.
- Check units against MUEs with our MUE lookup.
- Review the top rejection reasons every week and fix the cause, not just the claim.
Related
Measure the rest of your revenue cycle with the denial rate calculator, net collection rate calculator and days in A/R calculator.
Frequently Asked Questions
Written by Hassan Raza Awan
Founder — LegitMedBilling & IT Solutions
Hassan has 4+ years of hands-on U.S. medical billing experience — working claims, denials, credentialing, and payer follow-up for practices across the United States. Every guide he publishes is written from real remittances and payer behavior, not theory.
Rejected claims still have a deadline. Check it with our timely filing calculator.
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