Tuesday, November 19, 2019

Good Financial Experience Key in Patient Financial Responsibility

Patients would change providers for access to a payment plan, a key factors to addressing financial experience and patient financial responsibility.
November 14, 2019 - Patient financial responsibility is becoming insurmountable, with more patients than ever looking for healthcare providers that offer financing plans and a streamlined financial experience, according to a new survey conducted by ORC International on behalf of AccessOne.
The survey of nearly 1,000 patient respondents revealed that two in five consumers would switch healthcare providers if it meant they could have access to financing and payment plans. Half of households with children noted similar sentiments.
These figures are up from last year, when only 33 percent patients and 43 percent of families said the same.
These findings are reflective of the impacts out-of-pocket healthcare costs can have on patients, the researchers said. High health insurance coverage costs and patient cost-sharing are increasingly presenting themselves to be key healthcare barriers.
Health insurance coverage costs, for example, have reached nearly $20,000 per family, equal to the cost of an economy car. As a result, employers are shifting some of the cost burden onto employees, a trend that can be crippling to patients.
Employees contribute up to $6,000 for their family insurance plans, and those plans don’t even offer great protection, the report authors suggested. Nearly half of all Americans are enrolled in a high-deductible health plan, with deductibles reaching up to $1,350 for individuals and $2,700 for families.
And because of those high deductibles, patient financial responsibility is rising. Out-of-pocket patient costs grew by 14 percent in 2018, and over half of survey respondents said they spent at least $1,000 on medical care in the past 12 months. Thirty-eight percent said they spent more than $2,500 on health bills.
Those rising costs are the cause of considerable stress for patients.
Forty percent of respondents said they do not know how they would cover a $500 medical bill, highlighting the point at which healthcare costs become unbearable. Sixty percent of respondents said they wouldn’t know how to cover a $1,000 bill. Nearly one-fifth of patients said even a $250 medical bill would cause financial stress.
These high costs are impacting patient access to care, too. Fifty-six percent of respondents said they delayed care because of financial concerns, with nearly one-quarter of them saying they postponed necessary treatment for at least a year.
But healthcare providers are largely leaving patients out to dry, the survey continued. One in five respondents said they do not understand the options for paying for their medical care, while only 27 percent reported satisfaction with the healthcare payment process.
Seventy-four percent of respondents said they and their providers have not discussed payment plans or financing options in the past two years.
As a result, the onus is falling onto the patient, with many consumers finding their own ways to fund their medical expenses that could be detrimental to their finances in the long run.
Sixteen percent of respondents said their accounts have been sent to collections and many others are borrowing money to cover their expenses. Although only 4 percent of respondents have taken out bank loans to cover healthcare bills, 18 percent have put their balances on a credit card and 8 percent have borrowed money from family or friends.
Three in five patients are willing to shop around for care, and 38 percent are already doing so, but the study did not discuss whether price shopping was actually fruitful for any patients.
Nonetheless, patients are demanding support from their providers as they work to understand their healthcare finances. Fifty-nine percent of respondents said a provider’s willingness to offer price transparency tools is a key motivator when selecting a new clinician.
In fact, two in five patients said they expect their clinician offices to post price transparency information. Forty-two percent of patients with families and 43 percent of millennials said price transparency is a baseline expectation.
Sixty-nine percent of Gen X patients also said this, a significant demand considering many Gen X patients are managing healthcare for their own families and their aging parents.
Healthcare organizations need to step up to the plate to create a more consumer-centered financial experience, the survey authors suggested. Specifically, organizations may consider:
·         Being clear about costs with price transparency
·         Beginning conversations about payments early on in the care process
·         Creating understandable and patient-centered billing statements that clarify how much patients actually owe
·         Offering payment plans
·         Making the financial experience seamless and easy for patient navigation
·         Offering self-service or online bill payment options where applicable
Patient financial responsibility is only expected to rise as healthcare payer models continue to lean on cost-sharing and high-deductibles. Healthcare organizations need to consider different factors of the patient financial experience that will help improve their collections rates while emphasizing patient-centricity.

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