It’s no secret that health care costs are rising. What’s a little less understood is that many people combat these costs by buying a plan that features a higher deductible.
This potentially spells bad news for your practice.
A recent article in the New York Times cited how rising deductibles under the Affordable Health Care Act have made the health insurance that some people buy all but useless.
For instance, a 60 year-old former hardware salesman from New Jersey stated that his deductible of $3,000 a year made it all but impossible for him to visit a doctor. “We have insurance, said David Reines of the Garden State’s Jefferson Township, “but [we] can’t afford to use it.”
At Western Control, we don’t see it as our place to entertain arguments about the politicization of health care in the United States. However, as service providers to the healthcare sector, we would be remiss in not pointing out the dangers the current climate introduces to your business and its bottom line.
Whatever your view on “Obamacare,” one thing is certain: the age of high-cost health care insurance is here.
Let’s take a typical scenario seen at physician’s offices across the country.
When a patient goes to see a doctor, he or she might have a copay of $50 and a deductible of $1,000. Above these fees, the patient’s insurance kicks in and covers the rest. But the patient is still on the hook for $1,050. And very often, this money isn’t paid up front. Rather, the doctor’s billing company sends a bill to the patient for $1,050 expecting the patient will pay this bill in a timely manner.
You can probably already see what’s likely to happen. The patient might make a payment or two toward their $1,050 outstanding debt. But often the debt falls to the wayside soon after. For whatever reason, the patient stops making payments, the debt goes into default, and the doctor’s office is left with this debt on their books.
With all this money being kited about, it’s sadly true that a lot will fall through the cracks.
By the way, as a matter of protocol, we should keep in mind that the patient and debtor might be two different people. In cases where minors receive medical treatment, they are considered the patient whereas their parent or guardian are likely the person who pays for their medical care, and therefore the person who assumes the debt in cases where a copay or deductible must be fulfilled.
At Western Control Services, we’ve pretty much seen it all. Been there and done that twice, as the saying goes.
In short, we grow your bottom line by righting the scales of justice and putting dollars from your accounts receivable bucket where they should be: in your pocket.
Most small to mid-sized companies don’t have the time, expertise, personnel, or mission orientation to do what we’ve been doing for twenty eight years in our sector. Which is why most companies hire Western Control Services.
At the end of the day, it’s better to outsource your collections to a sharp professional than to try to go this road alone.
If you or your firm are part of the healthcare sector, and you wish to discuss a partnership that will grow your bottom line and free up valuable time and energy for better things, call Western Control Services today.
Western Control Services
We Grow Your Bottom Line By Righting The Scales Of Justice.