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Which aspects of your health insurance company can best benefit from innovation?

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The modern insurance market has grown ever more rigorous and complex with time, in turn requiring insurance companies to actively search for new ways to optimize their operations. Contemporary providers must adapt to an increasingly mercurial, uncertain financial landscape, all the while contending with demands for faster, more personalized, and more transparent service from policyholders.

The primary challenge here is that a great many health insurance companies employ legacy infrastructure or solutions for the vast majority of their processes to avoid the inevitable costs of replacing and upgrading their technology. However, as these systems are ill-equipped to perform at the high levels expected of modern insurance providers, continual dependence on them could lead to service delays and negative customer experiences. Overall, out-of-date technology can be expected to compromise the productivity and efficiency of the company as a whole, making innovation an urgent necessity.

If your own company is currently in the market for an appropriate health insurance solution, the first step is to assess your current needs. Being able to pinpoint where your organization’s efficiency gaps are and what aspects of your operations could be improved through digitization will give your leadership a sense of what to prioritize when seeking tech upgrades. The following facets, for example, generally benefit from technological innovation and are likely to improve your company’s overall performance significantly when automated:

Policy Administration

More agile and adaptable policy administration is the first goal that makes sense to work towards when it comes to innovation among health insurance companies. Current digital health insurance solutions can help your company consolidate its employer groups and enrollment conditions as well as streamline its enrollment process. Centralized databases of member information within the platform will also make it possible for staff to provide members with a higher standard of customer service. Lastly, such software will have the analytical capabilities to calculate appropriate prices and premiums quickly and accurately, even in the face of sudden increases and other changeable market conditions.

Claims Adjudication

Current research shows that expeditious claims processing is a major determinant of customer satisfaction for a majority of policyholders. The use of intelligent and meticulously calibrated software not only shortens claims processing time but also serves to reduce labor costs and other operational expenses. Automated claims adjudication, for instance, allows for individual claims to be processed in real time within the system instead of defaulting to more time-consuming batched processing. Such a software is likewise fully capable of managing your company’s contracts efficiently, as it ensures that all your contract configurations and related claims pricing schemes are comprehensively documented and constantly traceable within the system.

Revenue Management

Efficient revenue management will both improve customer satisfaction and afford your company greater control over revenue leakage. The goal here is to ensure that your company’s payment, billing, and collection processes are accurate, prompt, and fully transparent at every step. Digital revenue management solutions enable you to do all this and more by enabling your company to manage multiple business lines on a single platform. The software supports multiple billing methods, including but not limited to individual and group billing, exchange, government plans, and other schemes to allow you to tailor your services across a diverse client base. Its functions are also scalable and able to accommodate a high volume of requests at once without accuracy loss.

Value-Based Payments

Fee-for-service reimbursement models for healthcare providers are quickly falling out of favor with insurance companies in the face of modern value-based payment models. Value-based payment models link the compensation a healthcare provider receives to their performance, which is thought to incentivize more cost-effective decision-making on their part. Though value-based payments are considered more complicated to set up and manage than traditional models, these challenges can readily be mitigated with the appropriate software. Proper digital solutions will afford insurance companies the flexibility to handle multiple data sources and payment triggers, different payment calculation methods, and a variety of possible ways to pay. Having these mechanisms in place will give you the freedom to pursue and implement the most innovative possible payment models with all speed.

Healthcare Data Management

Appropriate digital solutions can help your company maintain a unified repository of clean and consolidated healthcare data, such as clinical documents and patient records. Having this data readily at hand will help your organization cut costs and boost the efficiency of its processes. Optimal healthcare data management also helps ensure that your members receive the highest possible standard of care by facilitating a smooth and easy exchange of patient information among necessary entities like insurers and healthcare providers. The information contained in a digital healthcare data repository is designed to be accessible, reusable, and interoperable. Healthcare and insurance providers alike have a comprehensive view of the entire care process and are thus better able to make informed decisions and take decisive action.

As explored above, any insurance provider can adapt to the demands of a rapidly changing market by utilizing suitable digital solutions to innovate its existing processes. Pursuing innovation in this manner, though it may initially seem labor- and cost-intensive, is an investment that is highly likely to deliver greater returns over the long term.

Read Next: 6 considerations for medical insurance plans to make before purchasing

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