Simplifying Heathcare Virtual Payments


The U.S. healthcare payments system is considered one of the most complicated accounts payable (AP) systems in the world. The number of market players involved to support payers and payees delivering payments is staggering in complexity and volume.

Imagine if the U.S. healthcare system was considered a country recognized by the United Nations. It would be the 5th largest country per GDP in the world. Now, imagine that country’s private entities paid over 70% of its bills and invoices with paper checks in today’s digital economy. That is the reality we face today, but also the exciting change Comdata is ready to help healthcare optimize their EFT payment adoption and move away from paper checks.

Evolve virtual payments for claim payments

Comdata virtual payments has been helping streamline customer AP payments since 2005, and serves as an industry stable platform ready to streamline healthcare claim payments from checks. Our industry and virtual payments have helped retail, corporate and construction AP speed up vendor payments and reduce administrative costs to payees.

Healthcare customers have similar challenges for their AP cycle. However, they have the added complexity of claim payment regulations of the Patient Protection and Affordable Care Act (PPACA) and the Employee Retirement Income Security Act of 1974 (ERISA) to ensure the AP funds are delivered and extinguished in accordance to funding regulation. Understanding the challenges faced by healthcare customers, Comdata has created a product offering specifically to support regulated claim payments.

Advanced Card Issuance and Funding services

To ensure compliance with ERISA fund regulations, any virtual payments processor requires advances in funding to ensure ERISA “funds-in-transit” activities are not inappropriately managed per Department of Labor (DOL) guidelines. To help eliminate this concern and dramatically reduce the amount of pre-authorization funds exceptions for our customers, Comdata has revolutionized its processing to eliminate customers’ needs for pre-payment of cards at issuance. Such changes have reduced payment based exceptions by over 20% compared to traditional prepaid virtual card offerings for healthcare payers.

Full Reconciliation Transaction Offerings

Healthcare customers’ regulatory limitations need virtual payment partners that provide rules and balancing services which require full card use by providers to simplify remittance balancing back to AP systems. Comdata has provided new transaction balancing services to give self-insured plans the ability to optimize payments while keeping existing AP system reconciliation processes in place that match check and ACH delivery.

Full Dispute Management

Unlike other healthcare virtual payments vendors, Comdata is backing a full dispute management service for payers which eliminates payers’ financial risk when card and transaction disputes occur with providers. Comdata’s stability and experience in corporate payment card issuance provides us the operational fortitude to provide this unprecedented offering to customers and partners.

Virtual Payments Call Center

To assist payers’ concerns with the additional call activity regarding virtual payments delivery to providers, Comdata provides a call center that manages card education and issues, along with opt-out services for alternative payment modalities.

Healthcare payers must remember that not all virtual card solutions are created equal. The most effective solutions, backed by the size and stability of the card issuer, are those proven to reconcile back to traditional billing processes, take on the burden of fraud and dispute management, simplify the handling of overpayments and provide robust analytics for payers to better understand how healthcare payments are used.

Learn more about Comdata Health.