What can incorrect completion of the CMS-1500 form lead to?

The correct choice emphasizes that incorrect completion of the CMS-1500 form can result in claims denials or delays. This form is crucial for health care providers when submitting insurance claims, and accuracy is essential for efficient processing. If there are errors or missing information on the form, insurance companies may reject the claim or postpone the payment until the discrepancies are resolved. This not only affects the cash flow of the healthcare provider but can also lead to extended wait times for patients seeking services.

Ensuring that the CMS-1500 form is filled out correctly allows for smoother processing of claims, leading to timely reimbursements. While errors can potentially contribute to higher overall healthcare costs, as they may necessitate rework and prolonged administrative processes, the immediate and most direct consequence of incorrect submissions is the denial or delay of claims.