July 24, 2015
The Hidden Costs of Indemnity Payments
A recent white paper published by DataPath finds that traditional processing methods for indemnity payments may be costing claimants and businesses more than they anticipated.
In an evolving 21st century world, people move frequently or work remotely, and some do not have easy access to their home banks. A staggering number of workers, an estimated 25 million people, are still underbanked. This can be of concern, especially when businesses mail checks or use electronic funds transfers (EFT) and the intended recipients do not receive the funds they are owed. Additionally, if an injured worker receives a check but cannot access a bank, he or she may incur costs by using another form of check cashing service.
For businesses, they must stay on top of payment processing to reduce missing, duplicate, and incorrect payments to the injured worker. This costs time and money. In addition, the business is likely to hear from the frustrated claimant about a missing or incorrect payment. Therefore, streamlining the payment process is in the best interest of both the injured worker and business.
DataPath’s research shows that using a card-based, bank-neutral indemnity payment solution can alleviate additional cost burdens of time and money, and save both parties many headaches.
To view the published white paper, click the link above, or visit the AHIP website.