Medical electronic payment adoption continues to hold steady at just a little more than 60%, where it has been hovering for years, according to the 2018 CAQH Index Report.1 For the past few years, the penetration rate has been hovering in the low 50 to early 60 percent range and payers continue to battle avoidable paper costs from mailing and printing.
According to the report, the combined savings of an electronic claim payment and electronic remittance (ERA) together is 89 cents. If every member processed 11 claims a year, that means that a payer with a population of 100,000 could save $979,000 by switching to paperless claim payments and ERAs. Opportunities for cost savings are huge in the industry – $61 million for electronic payments alone and another $103 million for electronic remittances.2
So, what’s taking so long?
Providers Need More Information
Most health plans are trying to transition to paperless payments and remittances, but they are running into obstacles such as:
- Skepticism about third-party vendors managing their payments due to a misunderstanding about how the process works
- Reluctance to share banking information
- Electronic payment security concerns
- A lack of understanding about the true benefits of electronic payments
If health plans want to get providers on board, they must find a way to dissolve provider misunderstandings, promote electronic payment benefits and make sure providers know that they can actually reduce administrative costs, as well as get paid faster.
Payspan Methodology Achieving 99%+ Adoption Rates
Health plans seeking to transition to electronic payments with their providers typically don’t have the time to educate providers about how payment systems benefit revenue cycles. Payspan has developed a provider enrollment methodology that can take over that task for health plans while achieving top results.
Payspan offers a toolkit of provider enrollment best practices that empower plans with:
- A plan for transitioning their providers to paperless payments
- A process for enrolling their providers into EFT/ERA transactions
- A way to promote the value of electronic payments
- The ability to offer options for ACH, print and VC
- A strong provider outreach program that combines email, phone and print messages that promote the benefits of electronic payments, such as reduced costs and administrative labor and faster payments
- Education about the highly secure processes that protect their bank accounts
- An easy registration process that includes options for single click and automatic enrollment
No other firm can deliver 90-99% ACH conversion, do it within 90 days AND deliver satisfied providers while charging providers nothing.
Learn more about Payspan’s provider enrollment methodology and how to drive provider adoption of electronic reimbursements.Download Ebook
1-22018 CAQH Index