Avoid Payment Fees with EFT

Humana Introduces $5 Paper Check Fee: Why It’s Time to Switch to EFT 

 

The healthcare landscape continues to evolve, and with it, the practices of insurance companies. Recently, Humana announced a $5 fee for any paper check issued for medical claims reimbursement totaling $5 or more. For providers, this adds yet another layer of frustration when navigating the administrative complexities of insurance payments. 

Why the Change? 

Humana is encouraging providers to transition to electronic claims payment options, including Electronic Funds Transfer (EFT) and Virtual Credit Cards (VCC). According to Humana, these electronic methods streamline the payment process, reduce delays, and offer greater efficiency. However, many providers view the $5 paper check fee as yet another cost-shifting tactic by insurers. 

What Does the Fee Cover? 

The official explanation from Humana attributes the fee to cover the cost of issuing paper checks, including materials like envelopes and postage. However, for providers, this justification rings hollow. A standard envelope and postage do not amount to $5, and many believe this fee is more about incentivizing providers to move away from traditional payment methods. 

The Bigger Picture: Costs Passed to Providers 

Humana’s paper check fee is not an isolated incident. Across the healthcare industry, providers face increasing administrative fees from insurance companies. These include: 

• Virtual Credit Card (VCC) Fees: While VCCs offer a digital payment option, they often come with processing fees that are passed onto providers, reducing the net reimbursement amount. 
• Delayed EFT Processing: While EFTs eliminate paper checks, some providers report delays of up to several months for processing EFT requests, creating cash flow challenges. 

These fees are particularly frustrating as they represent costs shifted onto providers for administrative processes that should ideally be borne by the insurers themselves. 

The Legislative Context 

Efforts are underway to address these issues through bipartisan legislation. Proposed measures aim to regulate fees associated with payment methods, ensuring fair practices and transparency. While these reforms are promising, providers need immediate solutions to mitigate the financial impact of current policies. 

What Providers Can Do 

To avoid the $5 paper check fee and reduce overall administrative burdens, providers are encouraged to enroll in EFT programs. Here’s a step-by-step guide to streamline the process: 

• Visit Humana’s EFT Enrollment Page: Start by accessing Humana’s electronic claims payment website, where you’ll find detailed instructions for setting up EFT. 
• Gather Required Information: Have your practice’s banking details, tax identification number (TIN), and National Provider Identifier (NPI) ready to expedite the enrollment process. 
• Submit Enrollment Early: Given the reported delays of 4–5 months for processing EFT requests, submit your application as soon as possible to avoid interruptions in reimbursements. 
• Monitor Progress: Stay proactive by regularly checking the status of your EFT application with Humana’s customer service team. Keep records of your communications to ensure accountability. 
• Consider Payment Options Carefully: While EFTs are generally the most cost-effective method, evaluate all payment options, including VCCs, to determine what works best for your practice’s needs. 

The Cost of Doing Nothing 

Failing to transition to EFT or other electronic payment methods could result in significant cumulative costs over time. For practices that process hundreds of claims annually, the $5 paper check fee adds up quickly, eating into already tight profit margins. 

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