NACHA Testifies before NCVHS on Use of Virtual Card for Claims Payments

On June 10, 2014, Priscilla Holland, NACHA Senior Director of Healthcare Payments, provided testimony to the National Committee on Vital and Health Statistics (NCVHS) Subcommittee on Standards on the use of virtual card for claims payments between health plans and providers. Other participants on the panel included representatives from Centers for Medicare & Medicaid Services' Office of E-Health Standards and Services (OESS), Hospital Corporation of America (HCA), the American Medical Association (AMA), VISA, and X12 N Insurance subcommittee.

The use of virtual cards for business payments between the health plans and providers has raised significant concerns in the healthcare industry as the cost of payment processing shifts from the health plans to the providers in many cases without authorization or request from the providers.  Other issues addressed included the lack of transparency in processing cost to the provider, complex processes established by the health plans to discourage providers from opting out of the virtual card programs, little or no contact information for questions or to opt-out included on virtual card documents, and rebates received by health plans on the interchange fees paid by providers that processed the virtual card transactions.

To view a copy of NACHA's testimony, click here

NCVHS Subcommittee on Standards will be making recommendations on virtual cards at the September 22-23, 2014, NCVHS full committee hearing. Be sure to visit the Healthcare Payments Resources Site to learn about the latest developments.