Consumer confusion causes delayed collection of patient payments

Despite the 75 million consumers enrolled in high deductible health plans (HDHPs), many are still uncertain about their payment responsibility. Through a culmination of surveys, only a third reported that they understand payment responsibilities for deductibles and copays, according to a recent report by InstaMed.

The confusion of payment responsibility is reflected in the amount of time it takes to collect a patient payment. The report revealed substantial delays, with 73% of providers reported that they waited one month or more to receive patient payments. More than one third (36%) of these payments take 31–60 days to collect. More than half of providers (60%) report their primary method for receiving payments is by mailing statements.

Patient uncertainty has been linked to a lack of understanding of the terminology used in healthcare payments. Just 7% of consumers reported they could define co-insurance, deductible, and other common HDHP vocabulary.

Unsurprisingly, providers are concerned about patient receivables. While the number of consumers enrolled in HDHPs continues to rise, so does the  increase in patient responsibility for payments.