Benefits of EFT Direct Deposit verses Virtual Credit Cards
Eliminating poor cash flow with EFT & ERA Technology insurance systems providers can proactively enhance, streamline and strengthen Provider management capabilities with insurance carriers because of the many changes that occur yearly.
This EFT & ERA technology for providers and payers should be easy to use, cloud-based to be accessible from home offices, and customizable to each payer network’s needs. These needs will be varied for each provider differently. * Patient insurance base for their location (in-network/out of network)
A threefold benefit is the threat of lost or stolen checks is eliminated with EFT, improved payment turn around cycle within 2- 7 days directly deposited into the practice bank account.
Some reports show switching to the EFT payment standard can save providers up to $36,000 per year. Switching to a technology based insurance system can achieve efficiency in the front desk systems.
Remember EFT without ERA implementation also is administrative suicide. You need to have both to achieve an efficient system of receiving EFT payments.
- What challenges are happening with insurance payments that involve virtual credit cards?
Main challenge is how to handle this type of payment being most practices have not requested this form of payment. There seems to be a lot of practices receiving VCC.
You have to look at it this way; the insurance companies are trying to get practices to choose an option of receiving payment. By check, EFT or VCC and engage a conversation, hoping you will choose EFT because it saves them money.
On the surface, this VCC payment might seem like a good option. However, processing it comes at a price.
Practices have to be very careful when choosing EFT payment because there are businesses out there that will give you the option to do this for you but, really don’t explain in the fine print that you will be charged up to a 2.9% per direct deposit payment which adds up in the end. After realizing this and wanting to opt out of this charge, the practice will basically have to start from the beginning of the EFT set-up with each insurance carrier again.
BE aware if you opt-out of VCC, it’s only good for 90 days, after 3 months they auto enroll you back to VCC and state there is a loophole that allows them to do this. Here is a website to opt-out of VCC without having to make a phone call. Make sure to have all the information from the form sent to you. https://echovcards.com