Payment Master(TM) Helps Payers Reduce Administrative Costs to Comply
with New Government Regulations
MINNEAPOLIS, Dec 14, 2010 (BUSINESS WIRE) --
U.S. Bank Healthcare Payment Solutions has launched Payment MasterTM,
a full-service healthcare claims settlement system for healthcare payers
and providers designed to lower administrative costs and improve the
efficiency of the overall healthcare payment system. U.S. Bank is
marketing Payment Master to commercial insurers, government payers such
as state Medicaid programs, and third-party administrators (TPAs).
The Affordable Care Act requires payers in the United States to reduce
their percentage of administrative and marketing costs, starting Jan. 1,
2011, to ensure that 80 to 85 percent of all premium dollars collected
are used for healthcare service and quality improvement. Transforming
their predominantly manual, paper-based claims settlement process is one
way to reduce costs, which is one of the reasons why U.S. Bank has
created a comprehensive, automated system for payers and providers.
Payment Master conveniently converts all claims remittances to
HIPAA-compliant 835 files; enables the payer to establish payment rules,
delivers electronic remittance advice and electronic fund transfer
(ERA/EFT) to each provider enrolled in the service; and enables
providers to view and download claims payment and remittance data to
support payment reconciliation and research.
Payment Master utilizes the expertise U.S. Bank has in processing
millions of electronic transactions each day and connects back to its
experience working in the healthcare industry. U.S. Bank has been
facilitating the payments process for payers, providers and consumers
for more than five years. With Payment Master, U.S. Bank is detangling
the healthcare payment model and delivering a tool that enables payers
and providers to move the payment process online.
"Payers have recognized the benefits of electronic claims settlement
solutions from the beginning, which has led some of the larger health
plans to start developing their own proprietary offerings," said Ralph
Bernstein, senior vice president of U.S. Bank Healthcare Payment
Solutions. "The difficulty for payers developing their own payment
products is their unfamiliarity with the banking system and the added
complexity it places on their providers who lack the resources to manage
multiple payer processes. By choosing an outsource partner like U.S.
Bank, with its history in the banking industry, and that offers a
single, standard, flexible payment portal, payers are positioned better
to transition their entire network of providers - small to large - to an
electronic claims settlement solution."
While approximately $2.9 trillion in healthcare payments flow through
the system annually, only a small percentage are paid electronically,
unnecessarily inflating the cost of care. With the introduction of its
Payment Master solution, U.S. Bank rounds out its product portfolio
designed to reduce costly manual processes and make the healthcare
revenue cycle more efficient for all parties in the healthcare
continuum - payers, providers, consumers and employers.
"Taking cost out of the healthcare claims settlement process will become
even more important as the industry works through the new regulatory
landscape and stakeholders look for means of creating more efficient
administrative practices," said Patricia Hewitt, director of debit
advisory services at Mercator Advisory Group. "Managing any remittance
process by paper is time intensive and costly for both the payer and
service provider. With an estimated 31 million more Americans entering
the healthcare system by 2014, solutions like Payment Master can help
payers prepare for the influx in claims, while lowering their
administrative costs, and delivering streamlined solutions to the
To learn more about Payment Master, please go to: http://www.healthcare.usbank.com/products-and-solutions/payer-solutions
About U.S. Bank Healthcare Payment Solutions
Healthcare Payment Solutions helps patients pay and providers collect.
An outgrowth of U.S. Bank's long-standing commitment to the healthcare
community, Healthcare Payment Solutions delivers innovations that
simplify the receipt and processing of payments, provides new and better
ways for patients to meet their financial obligations, and supports the
relationship among the participants in the healthcare continuum. For
more information about Healthcare Payment Solutions, please visit www.healthcare.usbank.com.
About U.S. Bancorp
U.S. Bancorp (NYSE:USB), with $291 billion in assets as of Sept. 30,
2010, is the parent company of U.S. Bank, the fifth-largest commercial
bank in the United States. The company operates 3,013 banking offices in
24 states and 5,323 ATMs and provides a comprehensive line of banking,
brokerage, insurance, investment, mortgage, trust and payment services
products to consumers, businesses and institutions. Visit U.S. Bancorp
on the web at www.usbank.com.
SOURCE: U.S. Bank
U.S. Bank Media Relations
Teri Charest, 612-303-0732