Tis the Season To Collect Patient Deductibles
No one likes the beginning of each year when deductible resets start. Patients don’t like it because they must pay more out of pocket; clinic staff doesn’t like it because they don’t want to have ‘those’ discussions with patients, and practice administrators don’t like it because it slows cash flow. There is no easy way around collecting deductibles or copays, but the following tips will help to collect patient deductibles.
Health plan deductibles are on the rise.
A deductible is an amount a consumer must pay out-of-pocket before their health plan starts to share in the cost of covered services. Over the last number of years, those deductible amounts and the number of consumers with deductibles have grown. In 2010, the average deductible cost for an individual was $917.00. By 2021, this had increased to $1,669.00.¹ The amount of the deductible varies from policy to policy.
What is a deductible reset?
Throughout the year, consumers pay toward their deductible when they pay for healthcare expenses out-of-pocket. Depending on their healthcare utilization, some consumers will meet their deductible before the end of the year. This will then result in the health plan paying more of their bills.
However, at the start of a new year, the deductibles reset, and the consumer is then responsible for their healthcare costs. Providers must then collect the balances directly from their patients.
Tips to Collect Patient Deductibles
Assign the responsibility to a specific staff member.
a. By choosing a specific person to handle this task, you will reduce the likelihood that payment collections will fall through the cracks. There won’t be any questions about who will speak to the patients and be able to answer their questions.
b. Inform the staff member on how to collect money and what to do when facing objections from a patient.
Always verify whether a deductible has been met when you call to verify the patient’s insurance.
a. Make it easy to pay. User-friendly options help to decrease stress on both your staff and the patient and minimize frustrations.
b. Offer your patients many ways to pay their bill including cash, check, money orders, credit card, and over-the-phone payments.
c. Does your practice offer digital payment platforms? Do you utilize eStatements/ePayments? Online payments are the way to go! At Onpoint, we have seen our clients receive payments within minutes of receiving an electronic statement. The patients can access the payment link on their phone and make a payment.
d. Do you accept credit card payments and have a credit card on file policy?
Ask for immediate payment.
a. The most effective approach for collecting co-pays and deductibles is to encourage the patients to pay at the time of service.
b. Set a goal for your office to collect 100% of copays and deductibles when patients visit the office.
c. Be direct and polite when asking for payment. Instead of saying, “Can you pay today?” say, “I see you will have a co-pay/deductible of $X today. Would you like to pay with cash or with a credit card?”
d. Begin the conversation by asking for the full amount and, if that isn’t possible, then suggest other options e.g., credit card on file. This allows your office to charge their credit card each month for a set amount until the balance is paid.
Time of service collections and lots of communication will help to make collecting deductibles easier this year. Ensure that your staff verifies benefits and deductibles at every visit. Yes, this can result in multiple phone calls but better to confirm coverage than to chase payments. A patient can change insurances for many reasons. It could be the result of a job change or the company chooses a new health plan, or the patient has a life change such as marriage and changes health plans.
After all the goal is to do everything possible so that you and your staff spend less time chasing after patient payments and spend more time treating their ailments. For those who do not engage Onpoint Medical Solutions to manage your billing and collections, please feel free to contact us so we can explore ways that we may work together.
1 U.S. employer health insurance deductibles Statista, 2021