The No Surprises Act of 2020 took effect in January, delivering a message to physicians and health systems that large, unexpected charges after the fact are no longer acceptable — and leaving many providers unsure how this sweeping legislation would affect their bottom line.
This might be a boon for consumer financing alternatives, which have proliferated in recent years because installment plans and payment arrangements provide people who know what they owe a way to deal with rising healthcare costs.
CareCredit, like other financing options in the market, works like a regular credit card as long as it is used for healthcare.
Shannon Burke, Senior Vice President and General Manager of Health Systems at Synchrony, stated that the company has quickly expanded to include adjacent health services — cosmetic, vision, and audiology — and has crossed over to cover other specialties, as well as primary care and now wellness — and has crossed over to cover other specialties by 2018.
Given the current economic and health challenges, Burke believes that now is a good time for hospitals and providers to embrace healthcare funding.
“If we merely estimate that $400 billion will be paid or due out of pocket,” Burke said, “that’s a lot of money.”
Rising Demand
Burke is shocked that finance still appears to be a novelty, given the amount of press and attention paid to America’s faltering healthcare payment system.
It’s easy to forget when (if ever) a physician or medical provider offered you financing at the point of service or via an online patient portal. The majority of users respond “never,” and this must change if providers want to earn a significant piece of the $400 billion.
Burke stated that the total addressable market (TAM) for healthcare financing surpasses that amount, with around 13 million current CareCredit cards and the business aiming to expand in the future.
“This was mostly due to a lack of specialized coverage.” “It was clear that money was an issue,” she said. “[This] process is critical for individuals to understand why they need to think about finance.” I just discovered myself with a hefty out-of-pocket expenditure. It is just what is happening now, even if it is not voluntarily.”
Furthermore, she says that, in view of the pandemic digital revolution, the lack of payment options in healthcare, at least until recently, is nonsensical.
“If I end up with a significant debt,” Burke remarked, “I want a way to pay it.” “I see it everywhere else in my life, and I should see it everywhere else in my life,” says the author.
Believe in the Balance
Burke told that an awareness and education component is still in the works to increase CareCredit’s 13 million members.
Despite her many years of experience in healthcare funding, she hails from a generation that was taught, “‘This is a conversation that happens aftercare with the back-office personnel that I contact on the 800 number.” I’ve realized that we’re having a separate discourse.”
