Healthcare affordability continues to decline as patients struggle with rising healthcare costs. Roughly half of U.S. adults report struggling to pay their medical bills. Patients are also frustrated with the lack of cost transparency, inaccurate estimates and confusion around what insurance covers and what’s owed out of pocket. When there’s a lack of understanding about financial responsibility, seven out of ten providers see patients postpone services, according to Experian Health’s 2024 State of Patient Access (SOPA).
The survey also found that both patients and providers rank accurate estimates and the ability to quickly understand insurance coverage as top patient access areas to improve. Lack of clarity around the cost of care and difficulties affording medical bills puts patients in a tough spot. They may skip important medical appointments, rack up medical debt or sacrifice other basic needs to cover healthcare costs.
The impact of climbing costs can be significant to patient outcomes, the overall patient experience, patient retention and the revenue cycle. This article examines how rising healthcare costs affect patients and what healthcare providers can do to improve patient access and keep revenue cycles on track.
The impact of rising healthcare costs on patients
Rising healthcare costs pose many different challenges for patients and providers. From disruption in care to billing issues, here are three ways the growing price of medical care impacts patients:
1. Patients postpone medical care when the cost is too high
Record numbers of patients are putting off critical medical treatments due to rising healthcare costs. A recent West Health-Gallup survey estimated that 72% of Americans didn’t seek healthcare in the previous three months due to cost. A KFF study echoed this trend, reporting that one in four adults skipped or delayed an appointment because of affordability.
When patients postpone getting medical care — from wellness checks to managing ongoing conditions or treating serious illnesses — healthcare outcomes can suffer significantly. Patients also tend to have a poor patient experience overall and may choose to switch providers as a result.
2. Patients delay care when the cost of care is unclear
Patients want upfront, accurate estimates. Unforeseen surprises in medical bills frustrate patients — especially when prices keep rising, insurance seems to cover less and patients have more out-of-pocket expenses. However, not all providers offer estimates, and even when they are provided, the patient’s financial responsibility isn’t always clear.
Experian Health’s data reports that more than half of patients need their provider’s help to understand what insurance covers. Unfortunately, patient confusion about estimates, particularly around how much insurance pays, often results in patients putting off much-needed medical care.
3. Patients want personalized payment plans and easy payment methods
With climbing healthcare costs, many patients need help paying their medical bills. Without financial assistance, patients are more likely to skip out on important medical care, even when they have insurance. In fact, KFF reports that one in five adults with health insurance postpone healthcare appointments due to cost. Patients want more access to financial solutions that help them cover medical expenses, without going into debt.
While some patients benefit from charity options, others simply want payment plans to split up the cost of care over time. Manageable payment plans combined with easy-to-use, secure payment methods make affording medical care less of a burden. A positive payment experience may also help healthcare organizations boost patient retention.
High-income patients are also concerned with having a seamless payment experience. The PYMTNS Healthcare Conundrum data reports that around a third (32%) of financially well-off patients would switch providers to get a better payment experience.
What can providers do to respond to rising healthcare costs?
In 2023, 19% of patients reported spending more on healthcare than they could afford. As costs continue to rise, Americans will likely continue to struggle to cover medical bills. In these challenging financial times, healthcare organizations must strive to provide exceptional medical care and a positive patient financial experience to keep revenue cycles on track and patients coming back.
Here’s a closer look at several strategies providers can adopt to improve patient access and offer the financial clarity patients crave.
Leverage healthcare technology
Patients want a frictionless experience, from initial registration to final payment. Experian Health data shows that 60% of patients want more digital access solutions to manage all aspects of their care. An even greater majority of patients — 72% — want more payment options, like online and mobile payment solutions. Opening the digital front door puts patients in the driver’s seat, while freeing up staff from burdensome administrative tasks.
Providers that leverage healthcare technology, like AI and automation, at all stages of the revenue cycle — from estimates to collections — can expect to see even more benefits. Tools like Experian Health’s Patient Access Curator use AI to offer providers a single-click solution to streamline patient eligibility and coverage checks in just 30 seconds. Checking and verifying eligibility upfront helps prevent denials and create a smoother patient experience.
Implement price transparency measures
More than 80% of patients say pre-service estimates help them prepare for the cost of care. However, estimates aren’t always accurate, with 14% of patients reporting higher final costs than expected. In addition, 20% of providers indicated that cost estimates are rarely provided and tend to be inaccurate when they are. To improve patients’ financial experiences, providers should consider digital financial solutions that empower patients with transparent pricing.
Tools like Experian Health’s Patient Payment Estimates generate upfront estimates that include real-time pricing with benefits and discounts factored in. Estimates and secure payment links are sent automatically to patients via text or through the web-based app. Additional tools also help patients search for missing coverage and find suitable payment plans when needed.
Automate patient collections
With rising healthcare costs, collections continues to be a major challenge for providers. Automated tools like Patient Financial Clearance help providers better assess a patient’s ability to pay and connect them to an appropriate financial pathway. This solution also identifies if patients qualify for financial assistance, Medicaid, or other assistance programs.
Healthcare organizations that automate healthcare collections can offer patients a more compassionate and streamlined collections process. Providers can use automated text reminders or email to help patients meet payment deadlines. Reminder messages with quick payment links allow patients to click and pay instantly. This empowers patients to find the assistance they need while freeing up valuable staff time.
Find out more about how simplifying estimates and payments can help providers respond to rising healthcare costs and improve patient experiences.
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