How Can Technology Reduce Healthcare Costs: The Future of Healthcare Coverage
Countless technological advances have enhanced our individual quality of life, enriched human society, and strengthened its foundational systems. The elevated level of care providers can offer their patients parallels this ongoing evolution in technology. From the smallpox vaccine to penicillin, to stem cell guns that grow new skin for severe burns, various technological innovations have furthered human medical capabilities beyond imagination.
And yet, technology’s full potential has yet to surface in the struggle to reduce U.S. healthcare costs. As rising prices reach epidemic proportions, patients and employers alike seek ways to mitigate record-breaking increases and reduce margins. Some emerging analytic and computing technologies, however, could boost operational efficiency and help relieve the economic burden for employers providing healthcare for employees.
How can technology reduce healthcare costs? This article discusses the untapped technological potential that’s emerging in healthcare and describes how it can benefit providers, patients, and their employers.
How Can Technology Reduce Healthcare Costs?
While many think of healthcare technology in terms of cutting-edge clinical tools and treatments, most overlook the computing power technology wields within accounting offices and billing services. Though not as spectacular as surgical advances, the improvements technology can offer in less-sexy fields like accounting and operations could help heal some economic ruptures in the healthcare cost space. Within this context, technological improvements to healthcare payment processes can improve a company’s bottom line—and may also reduce a great deal of physical and emotional stress.
Among employers, the pervasive trend in healthcare reimbursement is to provide employee coverage through private insurance companies. These companies pay healthcare providers directly for claims, usually at a contractually agreed-upon rate. Afterward, employers and employees typically pay a split reimbursement to the insurance company.
The insurance company then charges a fixed monthly rate, plus copays, annual deductibles, and coinsurance to help turn a profit in exchange for handling employers’ healthcare claims. This arrangement made sense in the past, as employers rarely had the capacity to research and edit healthcare claims.
Advancements in software have vastly improved data collection capabilities that are often paired with AI-driven analytics strategies. In the hands of third-party administrators (TPAs) and brokers, these Customer Data Platforms (CDPs) collect the most current research data and apply powerful analytics to help employers lower the cost of healthcare and reduce losses with more efficiently and accurately edited claims.
The future of healthcare relies on technological innovations that help diagnose physical, economic, and operational ailments, including:
- Telehealth. Sometimes referred to as telemedicine, this digital interface offers an alternative to in-person visits, either via telephone or internet access. Telehealth lets patients speak to providers and receive care for ongoing health issues at rates cheaper than a trip to the doctor’s office.
- Data analysis. New developments in software offer TPAs faster, better access to data and analytics. This could have significant implications, as TPAs have more flexibility when handling claims, billing, and processing. Powerful data analytics software will allow them to design better strategies for reducing costs.
- Comparison tools. If you’ve ever shopped around for the best price on an item, you can imagine the benefit of a comprehensive comparison tool that lists prices together so you can find the best deal. This benefits healthcare payers (employers and brokers) by providing information about and access to the lowest healthcare costs.
- Cost predictions. A newer development in healthcare technology is cost-predictive software, the utilization of which will allow companies to more accurately predict the cost of medical services and pass the information on to potential patients. It also assists in healthcare cost containment by facilitating better planning and increasing payment integrity and transparency.
- Streamlined claims processing. As medical codes and procedures become more complicated, claims processing has likewise become a more time-consuming and costly process. Innovative software solutions can drastically reduce the time required for processing accurate healthcare claims and significantly shorten turnaround times by automating a number of repetitive processes.
Advances in technology can deliver serious savings, higher-caliber care, and exceptional patient experiences. However, if you’re looking for a robust technological solution to lower healthcare costs, make sure to do your own research to confirm you’re using the best tools at your disposal.
6 Degrees Health Lowers Healthcare Costs With Cutting-Edge Technology
How can technology reduce healthcare costs? 6 Degrees Health was founded by healthcare industry experts for that exact reason: to lower healthcare costs for employers and their employees. We use powerful, proprietary technology to analyze industry-accepted data for our reference-based pricing solution. We also rely on market-based plan analyses to conduct efficient clean claim reviews.
At 6 Degrees Health, we believe in a future with lower, more transparent healthcare costs, which is why we partner with TPAs and brokers to offer employers the best cost containment solutions. Our MediVI software and data-driven approach enable us to provide cost comparisons that help negotiate more reasonable prices for healthcare coverage. With 6 Degrees Health as your partner, you could reduce healthcare spending by up to 40% while also increasing employee access to quality healthcare.
Still wondering how technology can reduce healthcare costs? Speak to a representative today to find out how our proprietary software solutions and reference-based pricing model can help you realize the true costs of healthcare.care.
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