It’s a little surprising—perhaps even disconcerting—that the average 20-24-year-old patient has never known a world without the Internet, has always had access to at least one computer and has been able to avoid using a map because his or her GPS navigation system would show them the way to any destination.
These folks haven’t had to mail in their taxes but could file them electronically, and—thanks to caller id—barely remember experiencing the surprise of who was on the other end of a telephone line. With their almost ubiquitous use of technology in every facet of their lives, it’s no wonder that these patients are interested in paying for their healthcare using electronic means instead of paper. In fact, many of these individuals may not even readily have access to stamps—it’s that unusual for them to send something via the mail.
Unfortunately, a lot of healthcare organizations do not currently meet the needs of tech-savvy patients when it comes to payment. According to a recent national survey conducted by HIMSS Analytics and sponsored by Navicure®, more than 50 percent of patients would prefer to receive their healthcare bills electronically, and that number jumps to almost 70 percent of patients aged 18-34. Yet, 89 percent of organizations surveyed still send their patient statements through the mail. Not only is this frustrating for younger patients because it makes the payment process more onerous, but it could also cause patients to delay payments or not pay at all, simply because it’s too hard.
Embracing the future
As healthcare organizations see a rise in patient responsibility, they are looking for better ways to collect patient payments, including deductibles, co-pays, co-insurance and remaining balances. Technology may provide a solution—especially for younger patients who have come to expect automated payment options from all their service providers—including their doctors and hospitals.
A credit card-on-file (CCOF) solution solves the fundamental issue in healthcare collections of securing payment at the time of service when the amount may not yet be known. CCOF systems store the patient debit and/or credit card information and then charge up to a certain dollar amount when the patient’s financial responsibility has been determined after insurance adjudication. The system encrypts the credit/debit card number and adheres to strict PCI compliance standards for data transmission and storage, preventing unwanted access from both internal and external sources. When the credit card is going to be charged, the system sends an alert to the patient, letting him or her know in advance of the charge. This healthcare payment solution is more straightforward and less time consuming for patients than writing checks and sending them through the mail—and much safer, too.
In addition to collecting unpaid balances, an organization can use a CCOF system to facilitate automatic payment plans. Once the patient and the provider have agreed on the payment amount and frequency, the healthcare organization can set up the plan so the patient’s card is automatically charged at the appropriate time for the specific amount. Not only is this convenient for patients, it is much more efficient for the billing department than manually supporting a payment program.
Getting past any reservations
Many other industries already use CCOF systems; however, this technology is not as common in healthcare. This may be due in part because organizations are unsure how comfortable their patients would be in sharing their credit card information. However, according to the previously mentioned survey, more than three-quarters (78 percent) of patients say they would provide their debit or credit card number to be charged one time up to $200 after claim adjudication if asked by their provider. Meanwhile, only 26 percent of provider respondents thought patients would feel comfortable providing their credit or debit card information. Furthermore, patients view CCOF as their preferred electronic method for charges of $200 or less.
There’s no going back
As time goes on, the need to provide electronic payment options will only increase. Younger, technology-driven patients will grow older, and the plugged-in children of today will want even more electronic, automated choices as they enter the marketplace. By embracing a safe and convenient solution like credit card on file, organizations can start making inroads to effectively capturing payments while making the patient billing process more consumer friendly.
About the Author
Jeff Wood is vice president of product management for Navicure, a provider of cloud-based claims management, patient payment and healthcare data analytics solutions. You can follow him on Twitter @Jeff_J_Wood.
The views, opinions and positions expressed within these guest posts are those of the author alone and do not represent those of Becker's Hospital Review/Becker's Healthcare. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.