CDHC Consumer - Directed Healthcare - Medical Billing News
Posted by John Guidroz on Fri, Feb 12, 2010 @ 02:50 PM
ARE YOU READY?
(Part 1 of 2)
The burden of healthcare costs is clearly shifting away from contractual payers resulting in increased patient out of pocket expenses. Under Consumer-Directed Healthcare (CDHC), patients are held to higher deductibles and co-insurance amounts. . According to the Department of Treasury, an increasing number of employers are offering a CDHC plan option for their employees.
http://www.treas.gov/offices/public-affairs/hsa/pdf/fact-sheet-dramatic-growth.pdf
This growth is already proving evident in increased account receivables in patient responsibility for many practices. Now is the time to consider this impact and address how CDHC is changing the billing and collections best pra ctices used to manage physician practices. Although practices vary by specialty, region, etc., there are some basics to consider as part of every action plan. These include but are not limited to, payer contracts, patient education, time-of-service (TOS) collection processes, and staff education.
Understanding the concept of High Deductible Health Plans (HDHPs) normally offered in conjunction with Health Savings Accounts (HSAs) is critical to the physician practice expecting to maintain strong cash flow and minimize bad dept. Participants in qualified HDHPs are incentivized by lower premiums as well as the ability to participate in tax-free HSAs. Proponents are hopeful this will cause consumers to manage their own healthcare budget dollars. If they are able to control their expenditures throughout the year, HSA funds are allowed to "roll-over," creating a build-up of monies to cover the higher deductibles, out-of-pocket expenses, and future medical costs during retirement. In general, an HSA account is treated much like a 401k with regard to penalties, i.e. withdrawal for non-medical expenses, increasing maximum tax-free contributions, and risk.
Treas.gov is a reliable source of basic information on HDHPs and HSAs as well as the statutory requirements under which they are administered.
http://www.treas.gov/offices/public-affairs/hsa/faq_basics.shtml#hsa2