The National Academy of Medicine (NAM) estimated that the United States BIR cost is 496 billion, 50% in excess. The solution? more stringent Insurance verification
BIR costs are administrative costs that include the overhead costs for the health insurance industry and providers’ costs for health insurance claim submission, claims reconciliation, and payment processing.
The NAM report further estimated that 66 percent of BIR costs for private insurers and 50 percent of BIR costs among providers are excess.
Your healthcare organization or practice is probably incurring admin costs that are double what they should be!!
The good news is that there is a solution – verifying insurance claims before service can help unlock value and arrest revenue leakages.
How the claims verification process works and the hurdles it faces
Is your practice affected by spiraling admin costs?
Is your organization swamped with insurance claim errors, claim denials, and unpaid patient treatment costs?
Are you wasting precious time on the insurance claim process when you could spend time providing healthcare for your patients?
Verifying insurance can make healthcare practice more comfortable, safer, and more rewarding for your organization.
The medical insurance verification process
Insurance verification is the process of contacting the insurance company to ascertain whether the patient’s healthcare benefits cover the required medical procedures. This makes it an essential process that needs to be done before a patient receives medical services. Skipping this process could leave your practice with an unpaid claim or a claim denial from the insurance company or a patient burdened with unexpected costly medical bills.
Verifying Insurance eligibility involves many complicated and time-consuming steps.
▪ Receiving patient schedules from the hospital
▪ Verifying with the insurance company the extent of coverage
▪ Reaching out to patients in case further information is called for
▪ Keeping the billing system updated with eligibility and verification details such as member and group ID, start and end dates for coverage, co-pay information.
Should your practice spend time, money, and effort on processing claims and following up with insurance companies for reimbursement when your resources can be better utilized to provide healthcare to your patients?
Let’s look at how outsourcing medical insurance verification can help your practice.
1. Enables ease of business
The insurance verification process maximizes value by minimizing claim denials and rejections.
Since insurance regulation is subject to change, failure to stay abreast of such changes could result in your business having to cope with rejected claims, billing errors, or even delays in reimbursement. Remember, healthcare providers, need to verify the member’s eligibility every time before providing medical services.
2. Increases patient satisfaction
Patients need to know how far they can rely on their medical insurance coverage and whether or not they may need to dip into their own pockets for medical treatment. Unless efficient insurance verification is carried out, the patient may be exposed to financial risk, which is damaging for both the patient and the medical practice. The complexity of verifying insurance claims often leads to costly mistakes that can be avoided by taking advantage of service providers with expertise.
3. Addresses safety concerns
Hospitals store a vast database of information relating to patients. Data worth a lot of money to hackers who can sell it unscrupulously on the dark web.
Organizations are becoming increasingly susceptible to online attacks. Why do you think cyberattacks often target the healthcare industry?
Today, medical records fetch up to ten times more money on the dark web than the credit card.
This requires organizations to pay special attention to cybersecurity. A successful cybersecurity plan requires an organization to closely establish and manage trusted digital identities throughout the digital healthcare enterprise.
Sufficient insurance verification ensures built-in safeguards to ensure privacy and security.
4. Increases revenue generation and improved cash flow
Healthcare providers can opt for accurate Medicare verification (as well as processing claims to other federal and private insurance providers) to avoid the pitfalls of insurance claims, increase collections, and avoid bad debt.
Every healthcare practice should pay attention to insurance verification services as a means of positively impacting its bottom line while entrusting the complicated, time-consuming, and error prone claim procedures to a specialist.
When your practice outsources these services to specialists, your raison d’être viz. healthcare can be your primary focus.
Technology to the rescue – digital identity
Insurance verification can be strengthened by incorporating Digital Identity Verification for patients to ensure that they are who they say they are using technology.
A digital ID is not something that exists; it must be created with trust and then managed, protected, secured, and shared in the appropriate conditions.
What is digital identity verification?
When an individual walks into a bank to open an account or enters a hotel to book a room, or even approaches an agency to rent a car, he needs to prove his identity by showing his government issued ID and proof of address. The service provider needs physical evidence that they are who they say they are, and the company doing business with them needs to be convinced to complete the transaction.
Now let’s flip to the digital world. Even when an individual is not physically present, companies need to verify who they are and ensure their digital identity is good.
Digital identity insurance verification to be useful as a tool should encompass the proof of a person’s digital identity using a digital solution.
With more than four billion people presently having internet access and globally internet penetration estimated to have reached 60% by the end of 2020, there is a growing opportunity for value creation through digital ID.
McKinsey Global Institute’s Report on Digital Identification estimates that digital ID could unlock economic value up to 4% of GDP in the US in 2030 and up to 13% in some emerging economies. Institutions are slated to benefit from improved customer registration, with onboarding cost reductions of as much as 90 percent.
You, as a healthcare provider, are unfortunately part of the $496B problem. But technology now allows you to be part of the solution.
A journey of a thousand miles must begin with a single step. When you take that first step, you ensure you are moving towards destination time and cost savings.
Contact our team at iTech to learn more about how our solutions can help you gain more efficiency in your revenue management cycle.