DataPath RenewCard reduces indemnity payment expenses, manual errors; simplifies tracking.
/PRNewswire/ — Indemnity payments not only represent a sizable portion of workers’ compensation expenses, they also require significant administrative resources. DataPath announced today that it is introducing RenewCard, a card-based indemnity payment solution designed to streamline the process for workers’ compensation payers.
“Our discussions with payers uncovered that automating indemnity payments would be a welcome time and cost saver,” said Dave Stair, director of insurance payment solutions for DataPath. “By creating RenewCard, we have given workers’ compensation payers a way to accomplish this, enabling them to focus on more critical priorities such as lowering medical costs.”
- Contain Costs: Often, an indemnity payment is issued to an injured worker via check. Check writing is a manual and expensive process. Some studies indicate that processing indemnity payments via check can amount to as much as $9 per check. For example, if a payer cuts 10,000 indemnity checks per year – processing alone could cost $90,000 per year.
- Improve Operational Efficiency: EFT processing is a less expensive alternative; however, it is prone to costly manual errors (e.g., incorrect distribution or account, duplication, etc.). EFT transactions also require the injured worker to provide current bank information, a challenge for transient workers (such as seasonal farm employees) or for those who are in rural or urban locations where banks are not convenient.
How it Works:
The payer submits indemnity payment requests through its claim system via EDI and creates an ACH transaction for the allotted amount. DataPath then issues an initial pre-loaded RenewCard (which is a MasterCard®) to injured workers. Subsequent indemnity payments are automatically placed onto the card. DataPath manages all card issues, including replacement if it’s lost or stolen.
DataPath RenewCard reduces administrative costs, inquiries to the adjuster about payment status and internal fraud. Additionally, since the payer transfers indemnity payment funds to DataPath, escheatment issues (such as not cashing checks) are virtually eliminated.
Visit www.indemnitypayments.com for more information on DataPath RenewCard.
To view the release in its entirety, please click here.