The three types of medical billing systems commonly used in healthcare practices are as follows: a. Paper-based billing system: Traditional paper claims are created and submitted to insurance companies manually. b. Hybrid billing system: This system combines paper and electronic billing. EHRs may be used for patient data and paper claims for billing. c. Electronic billing system: This modern system processes and submits insurance claims using EDI and electronic claims submission. Because they streamline billing, electronic billing systems are more efficient, secure, and preferred.