Credit Bureau TransUnion released a new report recently that points out that the healthcare industry needs to not only simplify the medical bill paying system, to be innovative, and help patients understand their health insurance benefits if they are ever to get millennials to pay their medical bills on a consistent basis.
This report from TransUnion pointed out that nearly six out of every ten millennials, or about 57 percent, had either no understanding or very little understanding of their health insurance benefits.The group known as gen X was found to have about 50 percent who said that they had little or no understanding of their benefits while only 41 percent of the baby boomer generation claimed they had little or no understanding of their health insurance.
Another noteworthy finding from the survey was that even though most millennials do have health insurance, it typically takes them longer to pay for their medical services than it does for other generations according to TransUnion.One reason for this is thought to be transparency in the billing process as well a lack of notification pertaining to out-of-pocket costs by insurance companies prior to treatment.
The TransUnion report also points out that 46 percent of millennials polled said they would that the likelihood that they would pay for their medical services would be greater if cost estimates were given at point of service.It appears that education surrounding their approach to health insurance options would be helpful to them.The report showed that 26 percent of millennials were happy with high deductible health insurance plan options, whereas on 17 percent of gen X chose these plans and only nine percent of the baby boom generation chose such plans.
“Providers should be looking for opportunities to improve cash flow coming from millennial patients to continue thriving.At Mnet, we have live agents who are more than happy to work with patients to help educate them about the healthcare process and how their health insurance policy works.We have found that this drastically enhances the patient experience” said Mnet Health CEO David Hamilton.
Another interesting point that came from the TransUnion report is that millennials are the most likely to compare costs for healthcare with a full 40 percent saying that they have shopped rates whereas only 29 percent of gen Xers and 22 percent of baby boomers have shopped around for servicing costs.
While it’s true that baby boomers are the most likely to have medical needs and the high costs related to those needs; it appears possible that a campaign aimed at educating them about the value of shopping around for services could likely create a change in their spending.Generation X could also benefit from comparing healthcare costs as well.Meanwhile, transparency in pricing for services is likely to add to the numbers of those who shop pricing for healthcare services.