Many Employers to Offer “Skinny” Insurance Plans in 2015

According to a survey by the National Business Group released earlier this month, as many as 16 percent of large employers will seek to minimize their healthcare costs next year by offering low-benefit, or “skinny”, plans to their employees.

The companies that will offer skinny plans versus fully ACA-compliant plans were not identified by their industries in the survey; however, traditionally companies with a high percentage of low-wage employees have taken the most advantage of those plans. Skinny plans are considered “minimum essential coverage” by ACA standards by virtue of being employer-provided, but are often lacking other key features that roll into that distinction.

Skinny plans allow employers to avoid a penalty by simply offering a plan, and purchasing one allows the employee to avoid individual mandate penalties by enrolling in a healthcare plan with lower premiums. Unfortunately, the benefits to individuals end there. Some plans cover nothing but preventive care, and all plans feature exorbitant deductibles that can make actually seeking care an unaffordable option should the employee ever require it.

Another significant blow to employees at these companies is that they will not qualify for subsidies to purchase better coverage on state or federal exchanges because their employer offers an ACA-compliant plan, regardless of whether they enroll in that plan or not.

The effect of skinny plans on healthcare costs to providers and vendors remains to be seen.

PRN Funding offers a variety of customized healthcare factoring solutions to healthcare vendors in order to cover operating costs – including providing insurance. To learn more about healthcare factoring or medical receivables factoring and apply for service, contact PRN Funding today.

CHS Data Hack: Is Your Company’s Information Secure?

While the tech security industry’s discovery of the Heartbleed bug in April made few mainstream headlines, its impact on information security became front-page news this week. Community Health Systems announced a massive security breach in which hackers gained non-medical information about approximately 4.5 million patients in their database.

According to a source “close to the CHS investigation”, the group responsible for the breach gained access by exploiting an unpatched occurrence of the Heartbleed bug in a Juniper device used by the hospital group. Once in, the attacker logged in via a VPN and was able to move deeper into the network.

The Heartbleed vulnerability was discovered in April in networking equipment distributed by Cisco and Juniper – unarguably two of the largest names in business networking equipment. The bug compromised the security of data encryption on IP networks, both internal and external. A patch was quickly developed, yet by June more than half of the infected sites on the internet had failed to apply it.

Security breaches are troublesome in every industry due to the potential for financial loss and identity theft, but in the healthcare industry there could be legal repercussions as well. Healthcare providers and vendors could be in violation of HIPAA regulations governing patient privacy even if the information compromised does not include details of their care.

Is your company’s information secure? Below are some best practices to ensure security now and in the future.

Make sure you’re secure.

Conduct an audit of your security as soon as possible. If you don’t have in-house IT professionals, schedule an appointment with a reputable third-party consultant to review your system. The IT professional will identify areas of potential vulnerability to address, as well as best practices to employ moving forward.

Educate your staff.

Human error accounts for a large portion of security breaches, so be sure that your employees are vigilant about information security. Remind them of basic protocol, such as not opening email attachments from unfamiliar email addresses, and advise them to be careful when downloading any extraneous programs onto their system. (In fact, you may simply prohibit the use of non-work-related software.)

Staff adherence to security procedures extends to their use of company hardware outside the workplace. Emphasize the importance of keeping work computers and devices safe when they are in the employee’s personal possession – after all, if a work laptop is stolen from an employee’s car then your information is equally at risk.

Use multiple layers of security.

Use different passwords for different programs, and give them an increased level of complexity – letters, numbers, and characters combined will help to thwart “dictionary attacks” run on the words within passwords. There are a number of passcode generators that you can use for a string of random characters. Reset your passwords regularly, and don’t write them down.

Update your anti-virus and antispyware software regularly to benefit from new definitions, and use an intrusion detection program to identify and block illegitimate attempt to access the system.

Encrypt your data

Protect the information in your network no matter where it goes. For communications including sensitive information, use an email encryption to secure the data against prying eyes.

Back up your data!

Always have a working hard copy of your data that you can use to restore the system in case the information is lost or compromised in a security breach. There are reputable online backup services that you can use as well, but the best practice is to also have a copy offline that you can access manually.

Protect mobile devices connected to your network.

If you work away from your office, either on a home network or a mobile device (laptop, tablet, phone), make sure that the security settings on those devices are also up to date. If it is an option, restrict the use of business-related information to devices that are owned and distributed by the business.

Have an updated security policy.

All of the above tips should be regular practices in your security policy, which you should always follow and periodically reevaluate. Other policies to consider may include:

  • Restricting who can access your network via VPN and when
  • Prohibiting staff from sharing security information over the phone, no matter what
  • Requiring that work hardware not be taken off the premises without authorization

Information security is a large investment of both time and money, but it is one of the most critical investments you can make in the longevity of your business. While you may not be able to thwart every potential attack on your data, having established security practices and following them will help you to recover more quickly and minimize the damage that an attack can cause.

If you lack the cash flow to invest in information security, PRN Funding can help. Our comprehensive healthcare factoring and medical accounts receivable factoring programs help healthcare companies from nurse staffing agencies to medical billing companies and more turn their open invoices into working capital that they can use to support their business – including its information security. Contact PRN Funding to learn more about healthcare factoring and medical accounts receivable factoring services.

Bundled Payments May Be the Future of Hospital Billing

If you reside firmly in the 21st century you are likely very familiar with bundling. You can bundle your car insurance with your home and life insurance policies, your cable with internet and phone services – even your soda with your pizza. Hospital billing is picking up on the trend, and soon bundled hospital bills may become the norm.

Typical hospital billing involves individual charges for each element of a given stay or procedure, down to individual doses of ibuprofen. Provider services are billed separately. In a bundled billing plan, however, hospitals would consolidate these charges to a single fee for everything involved in a typical procedure.

Not only do bundled payments offer savings to patients, but they also provide an incentive to hospitals to provide efficient, high-quality care. Hospitals would keep the net funds remaining after a procedure completed under cost, but would be required to absorb any additional costs for extra care or complications.

Medicare is working with more than 300 health care organizations to provide bundled hospital payments for large-scale procedures such as heart surgeries, and other facilities are expected to follow. In the future bundled payments may include those for chronic conditions as well. Rob Lazerow of Advisory Board Co. points out bundled price tags can help hospitals “compete on cost and quality” for patients shopping around.

Hospitals that shift toward bundled payments will need to work with high-quality vendors to provide the best care to their patients. If you want to expand your healthcare company to work with these hospitals, PRN Funding’s healthcare factoring programs can provide the working capital you need to get everything in order. Contact PRN Funding to learn more about healthcare factoring in every sector and to get started today!

Healthcare Sector Adds Jobs in May

Despite nationwide reports of healthcare systems eliminating jobs, the sector added 34,000 jobs last month according to the Bureau of Labor Statistics.

The healthcare sector has added jobs for 131 consecutive months, or nearly 11 straight years, despite the recession and fears that the Affordable Care Act would cause the sector to shrink. Last month’s growth was twice the standard rate at nearly three percent, most of which was concentrated in ambulatory services.

One element of continuing job growth is the increase in demand for services created by larger numbers of insured patients. At the same time, the decrease in uninsured patients due to marketplace policies and Medicaid expansion has reduced healthcare spending for charity care and covering self-pay patients.

Year over year spending has dropped significantly from 2007-2008 levels, but has remained consistent over the last several years.

PRN Funding offers healthcare factoring solutions to a variety of companies in the healthcare sector. If a lack of working capital is keeping your company from hiring the staff you need, learn how healthcare factoring can transform your cash flow and help your healthcare company compete. Contact us today to get started!

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New Bill Delays ICD-10 Again, Indefinitely

Despite claims by the Centers for Medicare and Medicaid Services that the October 1, 2014 deadline for the final transition to ICD-10 was firm, President Obama has signed a new law that will push ICD-10 back until at least October 2015.

H.R. 4302, “Protecting Access to Medicare Act of 2014”, is primarily the latest in a series of patches to Medicare’s sustainable growth rate; however, Section 212 of the bill prohibits the Secretary of Health and Human Services from replacing the current coding standard, ICD-9, with the new ICD-10 any time before October 1, 2015.

The delay has caused significant frustration and may compound difficulties for providers racing to be ICD-10 compliant. Providers at various stages of preparation for ICD-10 will have to maintain both their ICD-10 systems and their current ICD-9 systems until the switch takes place; in addition, many providers who are prepared to begin training for ICD-10 will have to postpone their efforts until a new deadline is announced.

Because the ICD-10 mandate is unfunded, the cost of preparation has fallen to providers who may suffer financially due to a delay. There is also little indication that payers are prepared for billing changes that will take place with ICD-10. At the same time, however, providers who are not as close to full ICD-10 implementation will have at least an additional year to upgrade technology, train their employees, and update their procedures. For payers, the delay will provide additional opportunities for critical end-to-end systems tests.

Proponents of ICD-10 argue that the new system will allow for more accurate coding of a variety of medical conditions, which will not only improve the quality of care but will also streamline billing processes by reducing requests for additional documentation. Health information management professionals recommend that providers stay on track for complete ICD-10 preparation, including a complete shift to ICD-10 coding with translations to ICD-9 until the standard is changed.

ICD-10 may also have a significant impact on healthcare vendors. Medical billing and coding agencies stand to benefit from providers choosing to outsource coding in advance of changing standards, yet all vendors may face longer waits for payment from facilities struggling to meet increasing financial demands.

We will continue to monitor updates to the ICD-10 transition and report on them as they come.

PRN Funding offers alternative financing solutions for healthcare vendors that need to tighten their cash flow in the wake of extended payments. Learn more about our various healthcare factoring programs, then contact us to receive an application and to get started immediately.

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Study Finds Healthcare Sector among Most Obese

In a seemingly ironic twist of circumstance, the American Journal of Preventive Medicine reported that the healthcare industry is among the top 10 most obese industries.

The data analyzed came from the 2010 National Health Interview Survey as well as self-reported personal statistics from employees. All healthcare workers are included in the overall “healthcare” sector, but a breakdown of health service employees versus practitioners indicates that the former are more at risk for obesity than the latter.

Researchers correlate risk for obesity in the job sectors listed to job factors such as stress, long hours, and working conditions that minimize movement and activity. In that respect, healthcare practitioners such as doctors and nurses benefit from time spent on their feet going between patients.

Long hours and shift work can make it difficult for workers to fit exercise into their schedule or to prepare and eat healthy, balanced meals – after all, a trip through the drive-thru is faster and less labor-intensive, thus more appealing to an employee coming off of (or heading into) a 12-hour shift. Also at issue are differences in pay that can prevent some workers from choosing healthier options.

One possible contributor to obesity in the healthcare setting that is not discussed, but that has interesting implications, is a shift toward banning smoking by healthcare employees. Healthcare employees who quit smoking may compensate by eating more, either to fill the time or because of the lack of cigarettes’ appetite suppressant effect.

Obesity can be a significant contributor to health care costs. With that in mind, understanding the prevalence of obesity in the healthcare industry – as well as its causes – can help healthcare employers adapt their working conditions and employee benefits to promote healthier lifestyles. For example, a hospital may offer free or subsidized memberships to gyms or weight-loss programs, or tie the achievement of health goals to lower premiums.

PRN Funding offers invoice factoring to the healthcare industry, which can improve your cash flow and allow you to invest in your employees’ health. Contact PRN Funding to learn more about your healthcare factoring options and to fill out an application today!

ACA: The Cost of Non-Enrollment

With the March 31 enrollment deadline looming, the Obama administration is working overtime to encourage uninsured Americans to purchase coverage in state or federal marketplaces. Approximately 50 percent of uninsured consumers plan to remain uninsured for a number of reasons, raising the important question: what is the cost of not enrolling in a valid healthcare plan?

Required Coverage

ACA-compliant health insurance policies must meet the law’s requirements for minimum essential coverage, which includes all government-administered plans as well as new and grandfathered employer plans and coverage offered by universities. While other plans may also meet the minimum essential coverage standard, consumers who hold non-compliant policies will be subject to the same penalty as uninsured consumers. Vision and dental-only plans, workers’ compensation, and healthcare savings accounts do not qualify as compliant policies.

Most consumers are required to carry a compliant healthcare plan; however, the ACA provides a number of exemptions for consumers who are unable to afford a qualifying plan or who fit other criteria.

How does the penalty work?

The 2014 penalty for uninsured consumers is the greater of $95 per adult/$47.50 per child, up to $285 per family, or one percent of your family’s gross adjusted income above the tax return filing threshold. (If your income is not high enough to require a tax filing, you are exempt from the individual mandate.)

Despite the focus on the $95 flat fee, more consumers earn more than the $19,650 that matches the $95 fee and will be required to pay a higher amount. For example, a family earning $50,000 annually would have to pay $297, or one percent of their eligible AGI – $12 more than the flat fee maximum. Though penalties are capped at approximately $9,800, many families do not make enough to meet this cap and will be on the hook for their entire penalty.

Can I enroll after the March 31 deadline?

Your ability to enroll in the federal marketplace after the deadline depends on a number of conditions. Currently, consumers who have attempted to purchase a healthcare plan prior to March 31 will be granted a limited extension to complete their enrollment. Once extensions have ended, you must wait until the next open enrollment period unless you have a change in life situation that qualifies you to enroll.

If you signed up for a policy before March 31 that features a gap in coverage (i.e. does not start immediately), you will not have to pay the penalty. Also, if you are without insurance for less than three months after the deadline you will not have to pay the penalty. For periods longer than three months but less than a year, you will be responsible for each month’s portion of the annual penalty for as long as you are uninsured.

For questions about your specific healthcare needs and plans that are available, visit Healthcare.gov.

With Deadline Looming, ACA Enrollments Fall Short

One week from today marks the Affordable Care Act deadline for individual consumers to have an ACA-compliant policy from their employer or the online health marketplaces. Consumers who have not enrolled in coverage by March 31 will face a penalty on their taxes and will be prevented from signing up for subsidized healthcare until next year.

However, despite the time crunch only a quarter of Americans at this point had accessed the exchanges by January and many thousands of others are still uninformed about their responsibility to obtain coverage. Unfortunately, the majority of uninformed consumers are those who would benefit the most from tax credits and subsidies.

Misinformation is a major source of public reluctance to use the online health exchanges. The political debate over the Affordable Care Act is well-documented, and additional state laws governing the implementation of the individual mandate have further complicated the process.

The Obama administration is elbow-deep in a campaign to inform consumers and encourage them to apply for insurance. Volunteers are contacting households via phone banks, email, and door-to-door canvassing with pamphlets and applications. Canvassers hope that by educating consumers they will be able to dispel some of the myths surrounding the cost of health care plans and demonstrate the importance of having a compliant policy by next week’s deadline.

PRN Funding offers factoring services to cover expenses such as health insurance premiums for companies that work with hospitals and other medical facilities. To learn more about healthcare factoring, contact us today.

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Young Consumers Not Using Healthcare Exchanges

According to reports from the Obama administration about healthcare enrollment in the online marketplace through January, only 25 percent of consumers who have purchased healthcare plans fall into the critical 18-34 demographic. The figure is far lower than the number of young consumers who have created accounts on the exchanges.

Many experts and administration officials have touted the importance of young consumers using the healthcare exchanges to balance the cost of care for older patients. While insurance companies can vary costs to a certain degree based on age, it is not enough on its own to control the difference in healthcare needs between the two demographics. A continued slump of young enrollees could prompt insurance providers to raise premiums significantly within the coming years, which would put a strain on the entire system.

One potential explanation for the lack of enrollment in the younger demographic is its overlap with another provision of the Affordable Care Act which allows parents to keep adult children up to age 26 on their own health insurance. The overlap affects nearly half of the exchanges’ target demographic, specifically college students and young post-graduates.

The federal government is not alone in fretting over low enrollment; states running their own exchanges, such as Minnesota, are also experiencing enrollment that skews toward the older demographic.

If you fear rising healthcare costs could threaten your company’s cash flow, consider healthcare factoring through PRN Funding. We can create a customized factoring program to fit your company’s needs and offset your cash concerns, with approval in as little as 3-5 business days. Apply now to get started.

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Healthcare is Going Digital in 2014

Move over, electronic health records: 2014 is shaping up to be the year of healthcare technology with a real-time benefit to consumers.

A number of tech trends – some new, others more established – are poised to change the way consumers find healthcare, interact with providers, and reap physical and financial benefits for pursuing a healthier lifestyle. Below are just some of the possibilities of healthcare technology on the market today.

Shop smarter for care. Online healthcare sourcing companies are developing responsive systems through which consumers can locate the best provider for their care concerns and know the real cost of service – including deductibles and co-pays – before ever making an appointment.

The doctor is in…your house. New applications and online services will give patients the opportunity to receive a digital house call rather than go out to a hospital or doctor’s office. Doctors can provide medical advice by phone, email, and possibly even video chat so patients can avoid higher out-of-pocket costs or the contamination risk of waiting among other sick people for care.

Wearable health monitors. Pedometers and wearable fitness devices such as Nike’s FuelBand and FitBit’s line of products became even more popular in 2013, and the trend is set to expand further in 2014. Fitness tech companies are turning to sensor-equipped workout clothing, like that already used by Major League Soccer, to provide more accurate data capture and a higher level of comfort for consumers at every level of fitness.

Get paid to get – and stay – healthy. Many companies and health insurance providers already offer discounts on premiums and other healthcare costs to consumers who take steps to improve their health, whether by meeting established health care goals or by enrolling in a gym or weight-loss program like Weight Watchers. In 2014, insurance companies are expected to similarly reward consumers who use health monitoring apps like MyFitnessPal to track their nutrition and physical activity.

In addition to this, there are applications on the market that will reward users for hitting their goals. One, the popular Pact (more than 100,000 downloads on the Google Play store), incentivizes healthy lifestyle decisions – higher vegetable consumption, food tracking, and workouts – by paying users who meet their goals and fining users who don’t.

Track your health for targeted wellness suggestions. Even though insurance companies aren’t paying you to monitor your health just yet, it is never too soon to get started. There are hundreds of mobile applications available for Android and iOS devices that help you track your activity and calorie intake. As health technology evolves, there is a very good chance that the apps consumers are already using may be integrated into consumers’ online health profiles. This would provide an aggregated picture of each consumer’s health as well as the opportunity for consumers to get targeted suggestions for improving their lifestyle.

These healthcare technology trends have the potential to benefit companies that subsidize their employees’ health care coverage. In the interim, make sure your company has the cash flow to effectively cover your employees with PRN Funding’s healthcare factoring program. Learn more about healthcare factoring services and complete our application today to get started.

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