Let’s be honest — health care payment complexities often leave patients frustrated and health care providers perplexed. The concept of deductible resets is anything but straightforward, and many patients find themselves in the dark about their health care plan’s policies. However, it’s time to change that. As we usher in the new year, both health care patients and providers are confronted with a common challenge, which is the resetting of insurance deductibles. 

This annual ritual requires many patients to once again dip into their pockets for medical services that insurance comprehensively covered just a few weeks ago, sometimes resulting in canceled or rescheduled appointments.

The Deductible Dilemma

According to a 2024 survey, deductibles have increased by at least 8% since 2019 — workers at smaller companies face an average deductible of $2,575. Additionally, over 30% of insured employees had a deductible of $2,000 or more in 2024.

The truth is that insurance companies and managed care organizations have redefined the rules of the game, transferring administrative responsibilities and costs onto physicians and patients. High-deductible health plans (HDHPs) are designed to prompt the proper use of health care services by patients. Unfortunately, for many Americans, this strategy has led to postponed or neglected essential and preventive care, often to their detriment. A survey reports that many insured adults, including 29% with employer coverage and 42% with Medicare coverage, delay or skip necessary medical care due to affordability concerns.

The surge in deductibles in recent years is primarily attributable to the proliferation of high-deductible health plan (HDHP) options. Patients opt for these plans with lower monthly premiums, while employers turn to HDHPs to mitigate expenses associated with lower-deductible alternatives. Now, let’s explore how your team can proactively gear up for the deductible reset at the year’s outset by talking to patients about money.

Tips for the Annual Deductible Reset

The period of time between the last quarter of the year and the first quarter of the new year can be challenging to balance. Here are some deductible reset tips for providers.

1. Send Patient Estimates

A great tip on how to prepare patients for billing is to send them estimates before the date of service. When patients know the financial implications of their health care services in advance, they can prepare and feel a sense of financial readiness. They won’t be caught off guard by unexpected bills and will be more likely to make payments on time. Providing patients with this level of support and financial transparency will also make them more inclined to return to your practice.

2. Provide Educational Resources

Helping patients understand the deductible reset can minimize bottlenecks in your revenue cycle. For example, you can send educational emails and newsletters or post information on your website about the deductible reset and how they can contact their insurance company. You might even provide a list of helpful questions to ask their insurer to give them further guidance, including:

• What is my deductible?
• When does my deductible reset?
• What types of appointments count toward my deductible?
• Do copays count toward my deductible?
• What is coinsurance?
• What are my out-of-pocket expenses?
• What is my annual out-of-pocket maximum?

You can take it a step further by contacting patients directly who have been delaying their care. Some patients may not realize that postponing certain services that seem optional can actually become more frustrating and costly. It’s important to explain these potential implications to patients and encourage them to schedule end-of-year care to prevent increased health problems.

3. Offer Prepayment Options

Collecting pre-payments, before the appointment, is the first step to minimize appointment cancellations or rescheduling later in the year. Initiating that conversation with patients can be a challenge, depending on their situation. One approach is to have a policy asking patients to keep their payment info safely stored with your health care practice. For instance, using an integrated patient payment portal with a Payment Card Industry Data Security Standard-compliant processing feature ensures patients can keep their payment information securely on file.

This idea has a twofold advantage: It makes it easy to collect payments, and it sets the expectation that patients will be responsible for their part of the health care expenses. Once you have their payment method securely on file, you can chat with the patients about automatic payments. The thought of charging their card, especially for a hefty bill, can be a bit intimidating, so tell the patient they can set a limit on how much you’ll charge the card. This way, they will always know the maximum amount that can be charged.

4. Engage With Patients Based on Their Preferences

Communicating with patients can be challenging and can take a lot of administrative time. Engagement intelligence tools enable you to create targeted patient communications and personalize revenue cycle management. Engagement Intelligence uses real-time analytics to optimize patient engagement and help you communicate with patients in the way they prefer. For example, the platform suggests the best time of day to reach the patient and their preferred medium of communication.

5. Collect Patient Payments Using Digital Payment Technology

The use of digital payment options, including mobile pay, digital wallets and secure internet platforms, has widely contributed to an improved overall patient experience. Digital payment technology significantly reduces the administrative burden for your staff and facilitates efficient transactions for patients. 

When collecting patient payments, rely on digital payment technology. Online payment portals are easy to navigate from mobile devices of any size and offer convenience, speed, security and availability for patients. Patients can choose the payment method that works best for them, including:

• Mobile Pay: A patient payment portal supports a single-click approval for payment collection that’s easy to navigate from smart phones, tablets, as well as laptops and desktop computers.
• Photo-capture bill payment: Patients can pay their bills with just a photo, streamlining the patient experience.
• QR-coded statements: Patients can quickly scan a QR code on a printed or electronic statement to pay outstanding balances.
• Text-to-pay: Patients can elect to receive a link via SMS that transfers them directly to the portal to make fast payments.
• Chat pay: Patients can chat with a patient payment specialist to inquire about a bill and submit convenient payments.

For you, multiple payment options ensure that payments are collected efficiently, immediately and safely.

6. Offer Payment Plans

Payment plans, often known as patient financing or installment payment alternatives, are a strategic solution for handling patient balances and increasing revenue recovery efforts. Here’s what they offer:

• Enhanced financial accessibility: Offering payment plans makes health care services more accessible to a broader range of patients. Patients who might not be able to pay a single lump sum can instead pay in manageable amounts. By choosing a plan that works for their needs, patients can more effectively manage high-cost services.
• Improved cash flow: Instead of waiting for patients to make lump-sum payments, establish a more steady income stream that can cover operational costs and investments promptly.
• Reduced billing hassles: When patients pay in installments, it eases the billing process for your practice. You can look at reduced administrative overhead and allow your staff to focus on patient care.
• Enhanced patient satisfaction: Patients appreciate the financial flexibility offered by payment plans, which can lead to improved patient satisfaction and retention.

With a digital patient payment solution, you can manage new or existing payment plans to help balance your revenue with your patient’s financial needs.

7. Ask Patients if They Have an HSA

It’s no secret that the world of health care can be intricate and multifaceted. One way to simplify the financial aspect of health care is by asking patients a simple question: Do you have a Health Savings Account (HSA)? HSAs allow people to save money specifically for qualified medical expenses. 

Understanding whether a patient has an HSA can significantly impact how health care expenses are managed. If a patient does have an HSA, it’s an opportunity to provide guidance and support regarding how they can use these funds for their health care needs. On the other hand, if a patient doesn’t have an HSA, this question can serve as an educational moment. Health care providers can explain the advantages of having an HSA and provide information on how to set one up.

8. Promote Preventive Services

All patients must pay for their medical care out-of-pocket until they meet their deductible. However, under the Affordable Care Act, many private insurance and group health plans cover preventive care and follow-up visits at no out-of-pocket cost for patients — even before they meet their deductible. Some patients may not be aware of this, so it can be helpful to inform them and encourage them to access preventive services.

Promoting these services to patients can help them identify and address potential health issues early on before the deductible reset.

9. Send Appointment Reminders

A simple way to tackle the deductible reset dilemma is to send reminders for end-of-year appointments. Appointment reminders can help patients avoid no-shows and late cancellation fees, which can reduce their financial burden. Additionally, reminders help ensure patients get the care they need during the year-end, which tends to be a very busy time.

Preparing for 2025? Reach Out to Millennia

Millennia Patient Payment Solution is a unified patient-centric solution meticulously designed to enhance the patient’s journey and bolster revenue recovery. We can streamline payment processes, eliminate confusion and minimize the frustration often associated with financial aspects of care. As you gear up for the year ahead, reach out to us for a free consultation. 

Discover how our platform can transform your practice, like our services did for OrthoNY, streamlining revenue management and the patient experience. It’s time to embrace the future of health care management with Millennia Patient Payment Solution.

About The Author

Kevin Hidenfelter

Kevin Hidenfelter is Millennia’s Executive Vice President of Sales and Marketing. He joined the team in 2022 with 25 years of experience in healthcare services and technology. With 14 years of experience in healthcare revenue cycle management, Kevin is very passionate about improving the patient experience.

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