The importance of modernizing member experience with digital payments
Consider this scenario: A health plan member, Lisa, finally receives a long-awaited reimbursement check in the mail—weeks after she was promised the funds. The delay was frustrating enough, but when she opens the envelope, she realizes the amount is wrong. Confused, Lisa calls customer service, sits on hold long enough to memorize the hold music, and is eventually told to wait for a corrected disbursement.
With no way to track the process in her health plan’s outdated portal, she’s left wondering when—and if—she’ll receive the right amount. Should she just frame the check as a memento of the healthcare system’s inefficiencies?
Lisa, frustrated, vents online and soon hundreds of other members share similar stories of delayed, lost, or incorrect disbursements.
This all-too-common scenario highlights a major gap in disbursement processes across health plans: outdated check-based payments and a lack of transparency create delays, confusion, and unnecessary stress for members.
At this stage in tech evolution, digital disbursements aren’t just a convenience—they’re an expectation.
Member payments: A key area to modernize
The necessity for a digital shift in medical disbursements for patients is clear. As members experience the speed, convenience, and security of digital payments (and, increasingly in-person payments), the healthcare industry will be held to those standards. Traditional methods of disbursing member payments — namely, the dying paper check — fail to meet these changing expectations, leading to dissatisfaction and frustration.
According to a recent McKinsey report, healthcare consumers are willing to spend more dollars on wellness but have grown upset with the lack of innovation in the healthcare space. The disconnect between expectations and reality presents a clear opportunity for payers to improve.
Additionally, meeting consumer payments expectations — lightning-fast transactions, quick access to funds, and transparent communication throughout the process—means they are primed to receive other digital-first initiatives from their health plan.
By adopting modernized member digital disbursement solutions, healthcare payers can align with consumer preferences, improving their healthcare experience and placing them on a digital path starting at the point of payment.
Digital disbursements: The opportunity for payers
Healthcare payers stand to inherit significant gains across multiple areas of business operations by adopting a modernized digital disbursement approach:
Improved member experience
Modern digital disbursement solutions can make members happier by giving them quick access to their money and making the payment process easier. Less financial worry may mean more focus on health.
Cost savings
Automated workflows and integrated digital disbursements streamline operations, reduce administrative burden, and enhance cash flow management. Thinking even bigger, a holistic payment strategy spanning member disbursements, provider payments, and premium collections drives even better business efficiency, cutting costs while improving the overall payment experience.
Enhanced security
The security of member transactions is crucial to the payer-member relationship. Systems that provide protected electronic payment processing can help build trust between members and their health plan.
Advanced digital payment solutions
Several digital payment options are available for healthcare disbursements. Each offers unique benefits and can be tailored to meet the specific needs of payers and their members.
Digital prepaid cards
Digital prepaid cards are a fast, consumer-friendly means of disbursing funds to members. They provide instant access to funds and easier spending options, offering a convenient alternative to traditional checks or ACH. Members can then move funds to a digital wallet or personal account.
Mobile payment apps
Mobile payment apps (like Venmo, PayPal) are the norm for many members, allowing members to receive and manage electronic payments directly in their smartphones. Bringing these apps to the healthcare experience can be an appealing point of differentiation for payers.
Electronic funds transfer (EFT)
EFT is already widely used by most health plans and still a good replacement for paper checks. EFT offers a secure, efficient way to disburse payments and plays a role in offering choice to members who are not familiar with more modern digital options.
Embrace modern digital disbursements
The transformation brought about by digital payments in other industries serves as a testament to their potential in healthcare. As the future of healthcare becomes increasingly digital, payers must embrace this transformation to stay competitive and meet the evolving needs of their members.
Modernizing member disbursements with digital options is not just a technological upgrade; it’s a patient-centered development. By providing timely access to owed funds, these solutions alleviate financial strain, eliminate long wait times and remove the complexities and wait associated with checks. Modernization allows patients to focus on managing their health, ultimately enhancing the overall healthcare experience.
It’s time for healthcare payers to embrace the future and make the shift to advanced healthcare digital disbursements.
Work with an expert digital disbursements partner
The future of digital member disbursements is here. With the latest enhancements to Zelis Advanced Payments Platform (ZAPP)SM for Member Disbursements, healthcare payers can now offer faster, more flexible, and consumer-centric payment options.
Explore how ZAPP’s new digital capabilities can modernize your member disbursements. Learn more here.
