We are pleased to welcome Ombud as a guest on the DocuSign blog sharing their insights on how the healthcare industry can succeed in an ever-changing market leveraging onboarding services such as DocuSign.
Our consumer-driven culture has already invaded the workplace with BYOD initiatives. Consumers are now gaining ground in the healthcare industry. Whether healthcare payers are ready – or not – their spending is being publicly scrutinized.
As a result, Healthcare payers need to cut excessive admin costs in Q1 of this year not only to comply with federal regulations, but also to maintain a competitive advantage in the market.
Affordable Care Act’s 80/20 Rule
The Patient Protection and Affordable Care Act enforces a policy called the “80/20 Rule”. This policy regulates the percentage of health insurance premium dollars that can be spent on things other than healthcare, also known as the medical loss ratio.
Healthcare payers are now required to make their medical loss ratio public record.
This means that healthcare consumers have the ability to use those published medical loss ratios as service differentiators and as part of their selection criteria for a healthcare provider.
Medical Loss Ratio Now Differentiates Healthcare Payers
As a result, healthcare payers publicly benefit from reducing the inefficiencies in their administrative processes sooner rather than later. Inefficient admin processes mean excessive administrative costs. This results in loss of profit and higher costs to consumers. Those losses are entirely avoidable.
Strategic planning to reduce wasted resources (both time and money) in administrative processes will be the game changer. Smart payers have already begun implementing the latest healthcare IT to cut those administrative costs that are entirely avoidable – to the tune of millions of dollars in savings per year. eSignature is an instrumental component of the solution to streamlining admin processes, reducing cost, and exceeding the government-mandated medical loss ratio.
Download the complete white paper to learn more about the business implications of the Affordable Care Act for healthcare payers. Also, learn what this map currently means for consumers when you download the white paper.