By Sanjog Patel, Director, Product Management, Mitchell Casualty Solutions Group
If you ask a group of workers’ compensation executives what is high on their list of initiatives in 2023, improving claims efficiency is likely in their top three. Very few would say they have cracked the code on streamlining and they are moving on to other things. Many organizations have invested significant resources in technological advancements over the past few years to automate operations and integrate systems. However, electronic payment processing is one area where available efficiency gains still remain largely untapped.
While most individuals have replaced traditional checkbooks with online banking, bill-pay, mobile-wallet payments, the workers’ compensation industry has been slow to adopt digital payments. Digitizing the provider payment process provides several benefits, including:
- Streamlining operations and boosting efficiencies
- Increasing provider satisfaction with quicker payments
- Reducing paper costs, provider service inquiries and fraud
- Ensuring state compliance
- Allowing adjusters to focus on what matters most—helping restore the lives of injured individuals
The digital revolution is here to stay, with total transaction value in the Digital Payments segment projected to reach $9.47tn in 2023, growing at an average rate of 11.79% per year, resulting in a projected total amount of $14.79tn by 2027. Although not all providers currently accept electronic payments, payers are equipping themselves to process a significant percentage of claims digitally and allowing providers to accept payments in the way they prefer.
Three Compelling Reasons to go Paperless
Significantly reduce the cost of processing payments and support issues while improving timelines and accuracy
A claims organization typically incurs around $8 in cost per check payment, whereas adopting an electronic payment solution can result in significant cost savings (estimated around 60%). Not only does issuing electronic payments come with lower material and labor costs, but it also helps minimize delays, errors, and support problems. Moving away from manual paper-based processes and embracing electronic payments can help claims organizations achieve greater efficiency and effectiveness.
Increase Automation and Allow Adjusters to Focus on Core Tasks
Nowadays, adjusters must handle various administrative tasks besides their primary responsibilities. For instance, they have to respond to provider calls regarding payment status, which distracts them from servicing injured individuals. However, if carriers transition from paper-based claims processing to digital payments, they can automate more administrative tasks, enabling adjusters to concentrate on processing claims and helping restore the lives of the affected individuals.
Maintain Compliance with State Regulations
Multiple states have mandated that property and casualty payers provide an option to send and/or receive electronic medical bills and payments, and other jurisdictions across the country are considering similar regulations as a simplification strategy and to improve injured individual and provider satisfaction. By implementing an electronic payment system into a casualty claims workflow now, payers can ensure compliance ahead of time, avoiding a scramble when a jurisdiction passes an electronic payment and electronic remittance information law. Though historically, state mandates on ePayments have not necessarily “moved the needle” on electronic penetration, the groundwork has been set which is now allowing payers to marry the regulatory compliance requirements with operational needs.
The Future of Electronic Payments is Here
As claims organizations look for ways to increase efficiency through technology, many are turning to automation, including electronic payments, to streamline the claims process. Implementing paperless solutions, such as electronic payments, can help payors transition to automated tasks and improve efficiency, boosting payment quality and ensuring compliance with current and future state regulations.
Electronic payments have become an integral part of modern society, and they are here to stay. The workers’ compensation industry has embraced electronic payments as a way to increase efficiency, reduce costs, and improve the overall claims process. As technology continues to evolve, we can expect to see exponentially innovative solutions for electronic payments, creating even more value for claims organizations in the future.
About Sanjog Patel
Sanjog Patel is the Director, Product Management with the Mitchell Casualty Solutions Group delivering smarter technology solutions for their Provider Products. He has been with Mitchell for about 4.5 years. Sanjog brings more than 11 years of business and product management expertise across a variety of markets and industries. Prior to joining Mitchell, Sanjog served in multiple roles in Management Consulting, Supply Chain Management, Fixed Income Finance and the US Army.
About Enlyte
Enlyte is the parent brand of Mitchell | Genex | Coventry, a leader in cost – containment technology, independent medical exams (IME), provider and specialty networks, case management services, pharmacy benefit and disability management. The three businesses have aligned their joint industry expertise and advanced technology solutions into a combined organization of nearly 6,000 associates committed to simplifying and optimizing property, casualty and disability claims processes and services.
Disclosure:
Enlyte is a WorkCompWire ad partner.
This is NOT a paid placement.