How Breakthrough CX Can Help Your Plan Save Big - Even on the Basics
We know paperless enrollment isn’t a topic that really draws a crowd. Getting members to sign up for digital communication can seem like small potatoes in comparison to improvements in chronic health conditions and hospital re-admissions.
But – in addition to setting the foundation to future communication with members about these bigger issues, paperless enrollment can actually deliver a big, and quick payoff for health plans. Keep reading for a business case that ties dollars saved to this claim.
Health plans spend a lot of money on paper mailings every year; mail that many of your members are less-than thrilled to find in their mailboxes. Meanwhile, many members are interested in receiving information on the steps that will contribute to better, and less-expensive care. What if you could give members what they want and save on operational costs?
Enter Zipari’s CX Engagement Hub (CEH), the technology that fuels next best actions individualized for each member, so members focus on the health goal with the highest value for them.
Keep reading below for a business case that highlights potentially avoided costs by engaging members into enrolling in paperless communication through CEH.
This business case shows the potential for $1.7M in retained revenue with a member population of only 100,000 members and a conservative estimate of current health plan mailings. Data from Zipari’s current CEH clients finds on average, a 64% rate of engagement for members who see their specific next best action recommendations via their member portal, mobile app or through interactions with the call center.
Interested in hearing more about how CEH could help your plan? Schedule a demo and get your health plan on the fast track to savings.
Health plans tend to mail members a lot of documents each year. In one year, for example, a plan might send each member an EOC (evidence of coverage), a plan ANOC (annual notice of change), privacy practices, as well as bills, and an EOB (explanation of benefits) for each instance of care a member may have received. Industry research shows that a typical patient statement costs a health plan $2.48 (including labor @ $10/hour),1 and Zipari’s client data shows that in a sample of almost 300,000 members, the average number of EOBs received was 4.7 per member, per year.
Paper Statements Cost Health Plans $2.48 Each
If we estimate 6.7 mailings per member per year(4.7 EOBs plus 2 annual notices) and a hypothetical membership of 100,000, we would calculate an annual expense of $1.7M for mailings.
$2.48 x 6.7 x 100,000 = $1,661,6007
What if your members got a recommendation to enroll in paperless billing via member app, portal, and/or call center?
A very small, 6% enrollment in paperless billing could save your plan $100,000 in a year. Meanwhile, Zipari’s client data finds 64% rate of engagement for members who get their specific next best action recommendations via member portal, mobile app or the call center. A 64% enrollment would save a plan with 100,000 members $1.06 Million in one year.
In Summary
This business case shows the potential for over one million dollars in retained revenue in one year with a member population of only 100,000 members and a conservative estimate of 6.7 mailings per member per year. Further, data from Zipari’s current CEH clients finds on average, a 64% rate of engagement for members who see their specific next best action recommendations. How much money could your health plan save if even half of your members enrolled in paperless?
Schedule a demo today to see how Zipari can help you with paperless enrollment, other administrative, or clinical member goals.