As healthcare costs have soared, more employers have moved to high deductible health plans (HDHPs) and according to 2022 data from Kaiser Family foundation, the average single deductible was $1,992 and average family deductible, $3,811. That means patients with high deductible and high coinsurance amounts are now responsible for a significant portion of the cost of healthcare. More than half of American workers are enrolled in high deductible plans, with that number increasing annually for the past eight years.
The old school approach of medical practices sending a series of printed statements and waiting for eventual payment is no longer practical (or affordable) and the area of “patient pay” has benefited greatly from technology options that enable patients to select both billing and payment options.
Jim Trotter, Chief Operations Officer for MSN Healthcare Solutions, noted their medical practice clients receive approximately 89% of patient payments electronically in response to text messages, e-mail and online links from paper statements. He stated, “We work to accommodate the lifestyle preferences of patients by offering them both communications and payment options. We are no longer restricted to old school methods that relied on mailing statements, making follow-up phone calls and then resorting to a collection agency.”
Trotter said the goal is to remove barriers and make it possible for patients to pay their bills more easily. A patient portal is available 24/7 for the convenience of the patient, who can correct billing information, make credit card payments or establish payment plans. He commented that since many MSN clients are hospital-based, the option to update billing information is especially important.
“The use of advanced technology has resulted in greater success collecting the patient portion of the healthcare bill while also reducing costs,” Trotter commented. “This has helped practices improve the patients’ experience in addition to improving their revenue at a critical time. As Medicare continues to chip away at reimbursement, we need to enlist all available resources and have found patients respond favorably to increased options.”
Ashlea Wadsworth, Director of Ancillary Services for MSN added, “Offering a convenient, secure, self-help/no contact option has been beneficial to our clients’ patients. And if the patient would like to ask questions or talk to someone, we have a Chat option or he/she can call a member of our customer care team. Our call centers operate in several time zones and we have Spanish-speaking team members so we’ve worked hard to remove limitations and offer flexibility.”
The United States Bureau of Labor Statistics reported that 51% of private industry workers were enrolled in High Deductible Health Plans (HDHPs) in 2023, with union participation at 35%. With approximately 60% of adults aged 18-64 years receiving private health insurance through their workplaces, patient payments represent a larger portion of the healthcare reimbursement dollar. This shift resulted in lower monthly premiums than with the traditional health plan, but higher patient deductibles for an HDHP (from $1,400/individual or $2,800/family) and total out of pocket expenses of up to $6,900 per individual or $13,800/family.
The trend of patients assuming a greater level of responsibility for their healthcare costs is expected to continue. “As trends and technology evolve, we will continue to modify our offerings,” Trotter stated.
Management Services Network, LLC (MSN) is a privately held company that provides comprehensive and proactive billing, accounts receivable and practice management services to medical practices nationwide. The breadth and depth of MSN’s experience and involvement in the medical environment provides clients with confidence, trust and results. MSN provides services beyond the typical billing company, such as patient satisfaction surveys, and has also been approved by CMS as a Qualified Clinical Data Registry (QCDR) for MIPS measure creation, submission and reporting. Learn more at msnllc.com.
