Why is my deductible so high? Why was I charged two different copays for the same visit? How do I know I’ll be covered if I see a new provider?
These questions — among so many more — illustrate how members have long struggled to understand what their health plans cover and how they work. According to the Milken Institute, an estimated 88% of Americans lack the health literacy required to navigate the healthcare system and support their personal well-being. Luckily, that’s where technology comes into play.
In 2019, Deloitte predicted that once digital transformation swept the healthcare industry, more consumers would demand greater access to their own health plan information. At the time, 65% of people said they were somewhat or very interested in using an online tool to check on the cost of care through their health plan.
Today not much has changed. Consumers are still looking for innovative ways to access, understand and use their health plans to their advantage. Unfortunately, digital healthcare experiences are few and far between.
Let’s take a closer look at why. From the benefits of digital transformation to the roadblocks in its place, we’ll walk you through everything you need to know about offering your members a digital experience.
What is a digital healthcare experience?
You might be wondering what we mean by “digital healthcare experience.” In short, we’re referring to the process of using online tools that enable your members to access, learn about, manage and enroll in their healthcare benefits.
Generally speaking, digital transformation isn’t anything new to the healthcare industry, although it is fairly recent. For example, both virtual care and telemedicine skyrocketed during the pandemic. In fact, virtual visits accounted for 13% of all insurance claims in April 2020. Moreover, telehealth usage increased by more than 3,000% year over year. Suffice it to say, members and organizations alike are eager to embrace digital transformation.
Why? The goal is simple: Improve the member experience. According to a recent Deloitte survey, it’s the number-one outcome healthcare entities aim to achieve through digital technology. Per the report, “they employ interactive capabilities, online tools and apps to create a seamless information-driven end-to-end experience — whether it’s to understand and navigate benefits, access care or receive health advice.”
For members, digital solutions take the shape of a single source of information for their entire coverage. From one dashboard, members can look for providers both inside and outside their network, review claims and finances, better understand their benefits and take control of their health.
More than just a great resource for members, digital care navigation tools are also an asset to employers, providers, brokers and third-party administrators (TPAs). Centralizing health plan management into a user-friendly interface takes the pain out of the process while also reducing costs.
For example, one care navigation innovator helped its employer clients reduce yearly medical costs by nearly $1,000 per member through digital tools and online access. As far as advantages go, that’s just the beginning.
The benefits of digital health plan administration
Simply put, everyone stands to gain from offering your members a digital experience.
Don’t believe us? Here’s how you and your members can benefit:
- Improved member engagement: Let’s face it: Health plans are notoriously difficult to understand. A digital interface can act as the go-to resource your members need to access crucial information, contact providers, communicate with customer service and fill in the blanks about their coverage.
- On-the-go access: You never know when members might need to access their IDs or benefits information in a hurry. With a dedicated mobile app, your members can take their health plans anywhere with the assurance their benefits are just a few taps away.
- Simplified compliance: Digital platforms take the pain out of compliance by making your data more accessible and actionable — all in one place. They allow you to quickly generate a custom report no matter the purpose, greatly simplifying the process.
- Easier benefits management: There’s no question that eligibility and enrollment can be a headache. User-friendly solutions make it easy to update member statuses, manage claims and track payments for all your members simultaneously.
- Increased efficiency: Manual work isn’t only error-prone, but also tedious and slow. Technology can streamline administrative tasks such as data collection or enrollment, helping you save time on the process.
- Enhanced member retention: Offering your members a more advanced, intuitive and feature-rich experience is a great way to keep them enrolled over the long term.
With so many tangible benefits for all parties involved, you’d think digital transformation would be more prevalent across the industry.
That’s not the case.
According to Deloitte’s survey, fewer than 5% of respondents have modernized their platforms to completion. Most are in the process or plan to modernize over the next few years.
The problem is that 69% of organizations lack the requisite expertise to develop such solutions. Even fewer have the resources available to make it happen. These roadblocks are significant challenges to digital transformation, severely limiting their ability to offer advanced experiences to the public.
MagnaCare: Where innovation meets access
Good news: You don’t need to worry about reinventing the wheel. With MagnaCare, all you have to do is hop into the driver’s seat.
As your TPA, we not only offer your members access to a nationwide network of providers, we also empower you to leverage a truly digital healthcare experience. Our Create® Technology platform takes health plan administration to the next level, allowing you to simplify processes inside and out.
From online open enrollment and member activation to managing medical and ancillary benefits, Create® is your one-stop shop for all things related to your health plan. Give members 24/7 access to their health plan information all in one location, where they can also learn about their benefits and better plan their personal wellness.
Learn more about accessing the MagnaCare network today.