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3 Tips for Painless Health Insurance Payments

Posted by Alison Arthur on 27 Aug 2018


Health insurance premiums are among the most critical payments that consumers make. Timely health insurance payments can both initiate coverage and continue benefits for underlying members. On the other hand, missed premium payments may put health insurance benefits in jeopardy and even lead to loss of coverage.

Unfortunately, health insurance bills can get lost in the shuffle of other monthly bills, especially for members receiving care from multiple healthcare providers. There are a variety of payments to keep track of when it comes to healthcare, including co-payments, deductibles, and health insurance premiums. This may leave members unsure of the amounts they owe, when those amounts are due, and who they need to pay.

An electronic bill presentment and payment (EBPP) solution can help members make on-time health insurance premium payments and encourage them to stay current on their policies. Here are three features an EBPP solution can offer to help make premium payments as painless as possible for health insurance members.

1. Accept and process binder payments seamlessly.

The first payment that a member makes to secure health insurance coverage is often referred to as a binder payment. Binder payments can be a headache for health insurers because there is no existing policy number or member ID to which they can link that payment.

An EBPP solution can help process binder payments seamlessly by creating member records in real time, as part of the enrollment process. It can also allow health insurers to process and settle binder payments separately from premium payments, while providing the ability to automatically link an application ID to a member ID once it’s created.

2. Provide flexible payment options.

Health insurance can be a significant expense for members. Offering a variety of payment options can help them better manage this expense, allowing them to align premium payments with a schedule that best fits their personal needs.

For example, some members may have the funds to make one-time annual premium payments in full. Doing so can help them avoid late payments and ensure coverage for the entire year. These members may want to take advantage of a yearly AutoPay option, so they can schedule future payments automatically.

For others, recurring payments may be a better option. Recurring payments let members determine the amount and frequency of premium payments, so they can better align these expenditures with their paycheck cycles. For example, a biweekly payment can be made for half of the monthly amount due, helping members allocate that cost into more manageable increments.

A payment plan may also be a valuable option for members. This allows the health insurance company to determine the frequency and amounts with which members can make payments, giving members the flexibility to pay their premiums over time.

3. Give members the ability to customize alerts and notifications related to their health insurance premium payments.

Once members choose a payment option that best fits their needs, an EBPP solution can also allow them to opt-in for alerts and notifications sent by email or SMS text message. This proactive communication can help keep them up-to-date on the status of their policies and encourage them to make on-time premium payments.

The Bottom Line: Health insurance premiums are some of the most important payments consumers make. An EBPP solution can offer seamless ways to process binder payments, schedule ongoing transactions, and keep members up-to-date with alerts and notifications.

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Alison Arthur Product and Content Marketing Manager Alison creates timely product marketing and thought leadership content that keeps Alacriti's community informed on the latest developments in billing and payments technology. With a background in payments and financial services, Alison specializes in composing content related to technology, security, compliance, and overall industry trends.

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