Leaving paper behind

U.S. Bank extends electronic payment services for insurers with Payment Master

MINNEAPOLIS – U.S. Bank, a division of U.S. Bancorp, recently announced the launch of Payment Master, its next generation electronic payment and claims processing service aimed at health plans.

Developed using the healthcare payment platform of Philadelphia-based InstaMed, Payment Master moves one step beyond the bank's existing extended electronic lockbox service it already provides to payers and allows claims, 835s and payments to all be generated electronically.

"As insurance companies are looking to reduce administrative expense and compete better after the passage of ACA, reducing print and mail costs, which can range from around $4 to as much $6.50 or $7 per payment, and reducing that to pennies by doing it electronic is an easy value proposition to see," said Ralph Bernstein, senior vice president and business leader of U.S. Bank's Healthcare Payment Solutions.

Turning to InstaMed to help with the development of the system was an easy call, noted Bernstein, because the two companies have worked together for the past four years on an electronic payments system for the hospital market U.S. Bank calls Payment Navigator.

Both companies noted that the time was ripe to bring similar a offering to health plans.

"We started working together on this other project, which helps providers get all this paper out of their system by creating multiple ways for them to get paid electronically," said Bill Marvin, president and CEO of InstaMed. "It then made sense to look at other customers and it is clear that healthcare payers need help turning things electronically."

With Payment Master, U.S. Bank has taken another half step in creating a payment network that is all electronic. With its extended medical lockbox service U.S. Bank would take paper documents from payers, scan them and convert the information to electronic remittance advice, 835 and payment. Now, it is able to accept an electronic file from payers and is effectively able to run the entire claim process all the way through to payments for providers.

For John Casillas, senior vice president of the Medical Banking Project for HIMSS, the work being done by U.S. Bank shows that they understand the value of creating and promoting an electronic model for medical claims and payments.

"The banks that understand their role – the healthcare space moves $2.5 trillion each year and when they are moved inefficiently, those costs add between $11 billion to $35 billion dollars in expanse – realize that they have an incredible opportunity to make a difference and help get that expense out of the system," he said.