The Trends in Healthcare Payments Tenth Annual Report is now available for download. The report features trends in healthcare payments that impact industry stakeholders: consumers, providers and payers. For 2019, the trends reveal a preference for digital payment options in healthcare, especially for consumers. This demand is set to grow as COVID-19 and social distancing emphasize the limitations of tools that require manual intervention.

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This webinar features key trends from this year’s report with Deirdre Ruttle, Chief Marketing Officer at InstaMed and Jeff Lin, Head of Product at InstaMed. View the Webinar

Meet Today’s Healthcare Consumers

83% of consumers prefer electronic payment methods for medical bills. 91% of consumers were surprised by a medical bill in 2019. Millennials and Gen X are 28% more likely than Baby Boomers to consider switching a healthcare provider for a better healthcare experience.

Since the first report was published in 2011, the report has tracked the downward trend in the amount payers covered for medical services and a growing portion due to the consumer. In the latest report, consumers owe more for medical services and health plan premiums, and demand for advanced payment technology is growing, too. The data also tells us that demographics, including gender and age, can exacerbate the impacts on individual consumers.

 

The Pain of Outdated Collections for Providers

87% of providers leverage paper and manual processes for collections. Only 23% of providers offer eStatements. 78% of providers cannot collect a $1,000+ patient balance in 30 days.

Over the years, providers have faced mounting collection challenges with the same tools and processes as they did a decade ago. Paper-based and manual collections clog provider collections that cannot keep up with the changes in consumer payment responsibility. The lack of progress affects provider revenue and loyalty among patients. Digital tools that rely on automated and electronic channels improve payment assurance for providers and meet consumer digital demand for a better overall outlook for provider organizations.

 

Challenging the Way Payers Do Business

81% of payers still deliver checks to providers. 86% prioritize consumer preference for making all of their healthcare payments in one place. Only 38% say direct-to-consumer solutions are a top priority.

Payers have been thrust into the spotlight in recent years as the healthcare industry looks for ways to manage the growing payments market. Competition from inside and outside the industry has grown fierce with large health systems and tech giants looking for a share of the health plan market. Payers must prioritize the payment experience for members with multiple digital touch points to maintain their position in the market. A focus on electronic transactions for providers and payment security is also necessary to the future of payer organizations.

 

Trends in Healthcare Payments Through the Years

For the past decade, the Trends in Healthcare Payments Annual Report has been published for the purpose of objectively educating the market and promoting awareness, change and greater efficiency. These trends highlight quantitative data derived from the InstaMed Network and feature qualitative, proprietary, independently gathered survey data from consumers, providers and payers nationwide. Trusted third party sources are also used to analyze the market from the perspective of all stakeholders – consumers, providers and payers.

The previous reports are available for download below:









 

 

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