Deductible reset changes patient payment behaviors
Deductibles for the majority of insurance plans reset in January, creating additional collections challenges for healthcare providers. It’s common to experience delays in collections, confusion from patients, increased financial burden, and more staff time spent responding to patient inquiries.
The impact is felt across the healthcare industry. This report examines trends impacting how healthcare providers respond during deductible season, changes in patient payment behaviors, and the financial impact on providers.
Trends: High-deductible health plans increase in popularity among consumers
Deductibles are higher today than they were 10 years ago. As a result, practices and billing companies feel the effects and spend more time dealing with patient collections, especially during the first quarter of the year.
Financial impact of deductible season
Healthcare practices bill and collect more from patients during the first quarter of the year. Before patients meet their deductible, they owe more out-of-pocket for healthcare expenses. During this time, it is critical for providers to ensure the patient financial experience is clear, convenient, and transparent, or risk losing significant revenue.
Healthcare practices see the largest increase in total patient collections immediately after deductibles reset (December to January), and during the height of deductible season (February to March).
Addressing the problem
Affordability is a growing problem for patients – 60% cannot afford to pay a medical bill for an unexpected illness or injury in one installment. Offering flexible payment options is one of the best ways for healthcare organizations to be proactive and maintain cash flow year-round. Data shows 80% of patients want the ability to pay for a medical bill in installments or as part of a payment plan.
Conclusion
Healthcare organizations and patients feel the impact of deductible season financially. In the past five years, more flexible payment options have eased the burden for patients. Healthcare organizations are able to mitigate the challenges and remain financially secure by being proactive in administrative processes, adopting modern technology and support tools to ease the burden on office staff, and providing clear, convenient tools for patients to pay and understand their healthcare bills.