Employers – One Simple Change; Millions in Savings

HealthcarePays and EmployersAt HealthcarePays, we ask the hard questions.  For instance, ”Why doesn’t the healthcare industry have a collaborative national healthcare payment network?  Why isn’t the outbound cash funded by employers and paid from payers to providers systematically compared across the entire ecosystem, before the payments are made? The financial services industry has had such a network in place for decades, why not healthcare?”

Healthcare is poised for some of the biggest changes in the industry’s history.  Yet, payment reform, changing the way payments are compared before being paid, will remain without change unless the industry participants collaborate on a better model.

Transformative changes to healthcare delivery and financing became law in 2010. By 2014, payers will be forced to set new premium levels and evaluate benefits. With employers (and their employees) the funding mechanism for healthcare, smart changes to healthcare’s way of doing business will be critical.  The ownership model of HealthcarePays gives employers the ability to stay benefit competitive and strengthen their position as influential stakeholders.

HealthcarePays presents one simple process modification that can be a game changer – a national member-owned payment network  that streamlines healthcare payments from all payers and attacks the billions our country throws away each year on healthcare waste and fraud. A reduction in waste and fraud in corporate sponsored and private plans would reduce employers’ overall healthcare costs and slow the growth rate of healthcare. Employer healthcare benefits experts estimate that the collaborative outbound payment comparison model of HealthcarePays can quickly find savings of the first full nickel in every employer dollar spent on healthcare; with a second and third nickel possible.  That is money that drops directly to shareholders for self-insured employers.

Some employers could save tens of millions by doing nothing more than routing claims payments through the HealthcarePays payment network, which aggregates and analyzes healthcare payments across the entire ecosystem. This cooperative and transparent network instantly detects fraudulent payments, wasteful claim payouts and other inefficiencies that continue to drive healthcare costs to higher-than inflation levels – threatening all employers’ ability to offer competitive healthcare benefits to valued employees.

A tale of two electronic payment networks

Healthcare Payment networkHealthcarePays is very similar in concept to two other well known payment networks – MasterCard® and Visa.®

In the 1950s, banks in California began issuing consumer credit cards but had little experience. They had no idea of how to deal with the volumes of paper and the credit fraud that rapidly mushroomed.   Credit cards began hemorrhaging hundreds of millions of dollars.

Two new entities emerged – both of which formed through participation and ownership being open to all relevant and affected parties. This simple concept was the genius that made Visa and MasterCard the world’s largest retail electronic payments processing networks averaging 175 million transactions each day.

After decades of perfecting the power in their networks, including the detection of waste and fraud, they both went public; MasterCard in 2006 and Visa in 2008.

Benefits of Overseeing Healthcare’s Funds

  • Reduce the cost of your employee health plan or use the savings brought by HealthcarePays to increase healthcare benefits for employees and create a more competitive benefits package to hire talent and increase retention
  • Help providers become more efficient without compromising care for your valued employees
  • Lower costs for employees — a reduction in healthcare claims ultimately reduces costs for employees and families when determining corporate cost sharing
  • Arm your corporation with another negotiation point when you bargain with health plans to lower administration fees and premiums
  • Have a seat at the table to help craft the “best practices” for the healthcare payment process such as when payments are released, and how those payments are distributed
  • Have a seat at the table to help craft the “best uses” for the resulting healthcare payment data cube.  A vast data store where the real-time healthcare payments, representing billions in payments, tell you the full story to how your money is being spent and watched over for fraud and waste

The Historical Moment is At Hand

Merchants throughout the U.S. today are subservient to the fees charged them by the large financial services network for the way payments are authorized and processed. They have no way out from under these established networks and have had to resort to legal action and the government (The Durbin Act) to seek relief from the greed that drives payment transactions to consume more and more of the overall spend.

Now is the historical moment for healthcare payments. Employers and providers can rally together to own the first ever, organically created payment network in healthcare. No bias, no special interests . . . the focus is on how money is funded, processed and approved for payment. As employers, you have this historical moment to grasp and forever be owners in the solution and its fee structure. The alternative is not pretty, ask the nation’s largest merchants.

Payment Oversight

With the regular release of studies citing billions in healthcare waste and fraud annually, either these studies and their respected authors are wrong, or the industry needs independent oversight into how payments are distributed. One of these outcomes or the other will be proven by HealthcarePays.


HealthcarePays connects employers into the healthcare system in a whole new way, by engaging employers, providers and payers through the industry’s first independent payment network. The billions of employer dollars funding healthcare are compared and authorized before payment.


Join HealthcarePays today and connect with the only nationwide network, and its ability to institute a full ecosystem approach to healthcare payments.  A system that scores for waste and fraud, systematically distributing only legitimate payments. It’s time to create healthcare payment accountability.