They are
artists and managers, drivers on call and professions who are ready to hop a
plane to lend their expertise at a moment’s notice. They are gig workers,
independent contractors who have shucked the shackles of corporate life for the
freedom to choose their own assignments on their own time.
But while
many of these professions have mastered living with uncertainty – the uncertainty
of when the next assignment will arrive or when they’ll receive their next
check, for example – there is one concern that leaves many gig workers feeling
unsettled: how to access the right level of healthcare coverage at an
affordable cost.
Studies
have shown that 63 percent of “gig workers” chose this untraditional path
willingly, lured by the freedom to choose their own projects and set their own
schedules. But the rising trend of gig workers also establishes a large pool of
adults – many of whom are not making much more than minimum wage – who are
without regulated benefits and legislative protection when it comes healthcare.
Combine this
with the rise in patient financial responsibility caused by high-deductible
health plans (HDHPs) and increase patient co-pays, and its is clear that the
new wave of “gig patients” will have a deep impact on the business of healthcare.
Looking at the numbers
Gig workers
are becoming increasingly common. A recent Intuit study estimates that 34 percent
of the current workforce belongs to this growing pool of workers and predicts
that 40 percent of American works will be independent by 2020.
It has
been speculated that new tax laws may fuel the growth of this worker pool even
faster. In fact, based on recent studies, freelancers are expected to become
the workforce majority by 2027 based on the current growth rate, with nearly 50
percent of Millennials workers already part of the gig economy.
For the
healthcare industry as a whole, the concern is with how the move toward a gig
economy may impact patient payment. Independent contractors are twice as likely
as employees to report they do not have health insurance. It is not a stretch
to assume that this number will increase with rising premiums in the individua
market and the instability of the Affordable Care Act. What’s more, surveys
have found that Americans delay care because they cannot afford it.
Those are
stark statistics that have healthcare leaders bracing their organizations for
an economic hit. Due to increased co-pays
and high deductible health plans, patient payments now account for 30 percent
of healthcare revenue. The gig economy establishes a workforce that exists in
the blackhole of insurance – earning too much to qualify for government aid or
subsidies, but often too little to be able to comfortable afford rising healthcare
premiums or high deductibles.
For
example, an Earnest study that explored earnings for more popular gig economy
sites such as Airbnb and Lyft found the vast majority of workers make less than
$2,000 a month. Compare that with the typical consumer who is now responsible
for $1,820 in deductible payments this year and $4,400 in out-of-pocket costs.
The numbers simply do not add up.
With 73
percent of healthcare providers reporting that is takes them one month or
longer to collect from their patients, and 68 percent of patients failing to
fully pay off medical bill balances in 2016, the question becomes: Can hospitals
and health systems survive the gig economy?
Mitigating the risk of “gig patients”
The good
news is that the gig economy in many ways represents patients’ preferences.
People want to and are even willing to take risks to achieve a certain level of
control over their own lives. The same rules apply to the desire for greater
options in paying for the care and services that they receive.
Here are a
few ways that the health care industry can apply the gig economy mentality to
patient billing:
1. “Gig patients” need
options.
Having only one solution for payment, such as a hospital payment plan, is no
longer enough, especially when 73 percent of consumers say that they have significant
healthcare expenses. The industry must consider offering multiple approaches for
fulfilling out-of-pocket healthcare expenses. These include charitable
assistance as well as short – and long-term financing at various interest
levels to match the up-and-down incomes of temporary workers.
2. “Gig patients” need
flexibility.
Consumers’ out-of-pocket healthcare expense are higher than ever, so payment
options should adapt to their fluctuating economic circumstances. Ideally,
financing options should be defined clearly up front, with payments set at an
amount that patients are comfortable with – and the option to adjust the terms
of the payment plan throughout the life of the plan. This is one way of meeting
patients in the middle and removing their fear (and likely avoidance) of a
giant bill.
3. “Gig patients” need
control.
It’s not just dollar signs that overwhelm a patient when it comes to paying
medical bills. Look for ways to simplify the payment process, such as by
offering access to any easy, online payment system, eliminating credit checks before
services are delivered, removing the threat of collections or punitive damages
in favor of a more collaborative approach to resolving balances, and exploring ways
to consolidate bills from multiple visits or family members.
Across
the industry, consumers are experiencing increased stress over medical bills,
but if there is any good news to come from tough discussions around rising
healthcare costs, it is that the emergence of new strategies and technologies
for approaching patient payments. With the rising gig economy, increased
flexibility around patient payment options may prove to be critical to the
financial success of many hospitals and health systems.
Click
here for the original article.