Article
Why you should prioritize digital payments
Digital payment processing doesn’t have to be a daunting task. Here are 4 reasons it should be at the top of your priority list.
By Bill Barbato, Chief Growth Officer at Optum Financial Payments | November 6, 2023 | 3-minute read
Answering the why for going digital with payments
Every day our industry increasingly recognizes the value of digital claims payments. But with this change come questions. Why are digital payments better? What are the specific advantages? How do they work? Learn the many advantages and importance of adopting digital payments.
1. Having digital payment options matters to customers
More and more people are embracing a digital lifestyle. As a result, a wider range of payment options than paper checks and ACH payments is expected.
For providers, numerous benefits come with offering ways to pay digitally. According to a 2023 report by Optum Financial, 58% of providers see faster payment collection and reduced account receivables days when using digital payments systems.
Better payment experience
In our recent report, 6 in 10 providers said they believe faster delivery of payments would improve their payment experience with payers.1
2. Digital payments deliver fast, predictable ROI
Claim payment digitization can have a clear, well-documented impact on customer satisfaction, starting with reduced payment lag time and increased efficiency and accuracy. Digital payments also offer immediate cost savings in printing, mailing and processing paper checks.
Faster payment processing can also reduce other claim-related costs. According to the latest CAQH index report, cost savings associated with electronic claim payment adoption for the medical and dental industries is $1.4 billion.2
Faster transactions
Medical providers experienced an average time savings of 4 minutes per transaction when they used digital payments.2
3. Digital payments help reduce fraud
Nearly 30% of all companies saw an uptick in fraud attempts in 2021. In 2021, ACH debits were the second most popular payment method targeted.3
About 20% of providers shared that they are very concerned about data security for digital payments. But digital payments can help reduce payment fraud by keeping sensitive information protected.2
More secure payments
When surveyed, 7 in 10 payers agreed electronic payment methods are more secure than other methods.1
4. Digital payment options drive provider satisfaction
There's no shortage of reasons to move to digital payments. The top paper-based claims pain point for 52% of providers are costs related to billing errors and reimbursements.
Also, payers estimate the top three most effective strategies they could implement to improve provider’s experience match the top desired improvements of providers.2
Faster payment delivery
When surveyed, 63% of providers said they would like faster delivery of payments.2
Switching to digital claim payments can lead to an affordable, self-contained digital transformation win that delivers results quickly.
Sources
- 2023 Report Optum Financial Health Care Payment Methods: Perspectives from Consumers, Providers and Payers. Unpublished, Internal Market Insights Report.
- CAQH. 2022 CAQH Index: A Decade of Progress. Accessed September 1, 2023.
- Association for Financial Professionals. 2022 AFP Payments Fraud and Control Report. April 2022.
Payment solutions, including Optum Pay®, are made possible by Optum Financial, Inc. and its subsidiaries (collectively “Optum”) and their service providers. Banking services are provided by Optum Bank®, Member FDIC, and other financial institutions. Because we are continuously improving our products and services, Optum reserves the right to change specifications without prior notice. Patented technology protected by one or more patents. Additional patents pending.