Communicate the Savings of EFT

Not sure how to communicate the savings of electronic funds transfer (EFT) payments and electronic remittance advice (ERA) to your healthcare customers? Consider these key talking points, adapted from the American Medical Association’s website:

Physician Savings

Physicians could save thousands of dollars annually by accepting electronic remittance advice (ERA) and electronic funds transfer (EFT) payments from health insurers and automating their claims process.

  • The Department of Veterans Affairs documents a time savings of 71 percent time and an expense savings of 64 percent in accounts receivable tasks.*
  • Companies report savings of more than $0.40 in processing costs for each paper check that is converted to an EFT
  • An estimated 3 billion claims were submitted in 2007**. If both physicians and payers used HIPAA-standard electronic transactions instead of manual ones, the health care system could save $90.27 billion each year.

EFT and ERA Combined Savings

  • Potential annual savings for switching to electronic remittance advise is almost $10,000 a year for a physician who submits an annual average of 6,200 claims.*** Potential annual savings for switching to EFT is nearly $2,500. Total savings — $12,500 per physician.

Automated Claims Savings

  • Cost to submit manual claims: $6.63 x 6,200 = $41,106
  • Cost to submit electronic claims: $2.90 x 6,200 = $17,980
  • Annual savings per physician from automating claims submission: $23,126

Calculate Your Savings

And that’s not all. Direct your healthcare customers to Aetna’s EDI savings calculator to calculate their potential practice savings.

For more information, tools, and resources, visit healthcare.nacha.org.

 


* Department of Veterans Affairs, April 2006 presentation at NACHA PAYMENTS Conference

** Sources: 2006 Physician Characteristics; National Healthcare Exchange Service, 2007

*** Based on an annual average of 6,200 claims submitted for a single physician. Source: Milliman, Inc., Electronic Transaction Savings Opportunities for Physician Practices. Technology and Operations Solutions. Revised: January 2006