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Modernization techniques can save the healthcare industry $33.2 billion per-year, and UBP is ahead of the curve

Filed under: Uncategorized — ubpblogger @ 10:21 am
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Let’s face it, our nation is not getting the most out of the $2.6 trillion we spend on health care. As such, United Health Group’s Center for Reform and Modernization has looked in to ways the industry can achieve substantial cost savings via technology in a recent working paper.

United Health Group estimates that the healthcare industry’s administrative expenditures are about $290 billion per-year. If the industry puts their working paper’s suggestions into practice and leverages technology to its fullest, the Group estimates a total savings of $332 billion in national health expenditure over the next decade. That’s roughly 33.2 billion dollars per-year. Of the proposed savings, United Health Group estimates 30 percent will go to health plans.

United Health Group’s Executive Vice President Simon Stevens stated in a June 30th conference call that the healthcare industry’s manual administration processes cost doctors, hospitals and health plans alike considerable amounts of time and money. In order to illustrate how archaic the healthcare industry’s administrative practices are, he made a direct comparison to both the travel and banking industries. In administrative matters, if the processes used in banking and travel were as out of date as those in healthcare, everyone would do all of their banking face-to-face in brick and mortar establishments. Similarly, no one would be able to book travel or find the most economic travel deals online.

Among United Health Group’s recommended cost saving tactics was the elimination of the paper explanations of benefits issued with each claim. The Group suggested replacing these paper statements with electronic ones similar to the monthly statements you receive from your bank. They also recommended delivering the statements electronically and in a secure fashion instead of mailing them out.

All of this would reduce the cost of explaining benefits 68% per-claim and produce a $14 billion dollar cost savings over the next decade. The group also suggested utilizing technologies currently available to automate the entire claims payment process, which could save roughly $109 billion in a decade.

Universal Benefit Plans is ahead of the modernization curve:

At Universal Benefit Plans, we have already implemented several of United Health Group’s suggested modernization tactics. Our proprietary double-encrypted HRIS system, The HR in a Box™, not only streamlines all benefit administration processes but makes benefit communication much easier with employee self-service. The HR in a Box™ allows companies to maintain all vital plan documentation and information in a secure online database and facilitates the transition of any such documentation whenever necessary from employer to broker via a double-encrypted electronic mail mechanism.

To learn more about how you can leverage our HRIS technology to reap considerable cost savings, give us a call at (617) 859-1777 or visit our website at www.universalbenefitplans.com.

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