Well, the primary reason is that health insurance carriers and TPAs (Third Party Administrators) that usually manage the insurance claims processing function are having to work in a tougher regulatory environment, which is increasing their operational costs. Adding to the woes are rising crude prices and that is why more and more health insurance carriers and TPAs are choosing health insurance claims processing outsourcing.
Why is Health insurance claims processing outsourcing the preferred choice?
Health insurance claims processing outsourcing is now the preferred choice because it allows health insurance carriers and TPAs to achieve targeted goals such as cost savings, efficiency improvements and enhanced accuracy levels. Costs are reduced since most health insurance outsourcing / claims processing outsourcing operations are carried out from developing countries where costs are relatively less. Achieving desired improvements in efficiency and accuracy is also not a problem in health insurance claims processing outsourcing since developing countries now have all the desirables such as up-to-date infrastructure, advanced IT systems and tools and highly qualified and trained human resources.
All of this works in favor of health insurance carriers and TPAs because it allows them to improve customer satisfaction levels without having to pay a heavy price for it. Moreover, since outsourcing firms keep themselves constantly updated about changing regulatory compliance norms, it allows insurance carriers and TPAs to concentrate on other important tasks such as increasing premium collections and expanding customer base. It is not surprising then to learn that demand for health insurance claims processing outsourcing has increased dramatically in recent years.