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In this tutorial, the speaker explains the five steps of claim adjudication in medical billing. Adjudication refers to the detailed processing of a claim by an insurance company after it is transmitted. The insurance company first processes the claim through their clearinghouse, starting with acceptance, which confirms that the claim contains the necessary information for review. Once a claim is accepted, the insurance company checks for five specific areas of information to complete the adjudication process. This systematic approach ensures that claims are thoroughly evaluated for approval.