Hometown Health pledges to pay quickly

The new guarantee by Hometown Health to pay insurance claims to health-care providers within 30 days demonstrates the power of technology.

The Reno-based health plan said it will pay 5 percent interest on any claims that still are outstanding after 30 days.

Hometown Health said it's the first insurance plan in the state to offer a prompt-payment guarantee, and it believes it's the first in the nation to do so.

But the offer requires that health-care providers doctors, laboratories, medical equipment vendors and health-care facilities submit claims electronically, said Jeff Snyder, chief operating officer of Hometown Health.

The organization is the health-insurance arm of Washoe Health System.

And the offer also requires that providers be prepared to accept electronic payments from Hometown Health.

The new guarantee didn't require much investment in new systems, Snyder said, because Hometown Health already has developed HealthConnect, a proprietary online service that will handle claims and payment.

HealthConnect also allows healthcare providers contracted with Hometown Health to submit and request information about members including billing over a secure private network.

Snyder said the 30-day guarantee provides a marketing hook for the organization.

He said health-care providers commonly cite slow payments as one of their biggest gripes with insurance companies, and Hometown Health wants to eliminate that possible complaint.

"We always look for ways to differentiate ourselves," Snyder said.

"This puts our money where our mouth is."

The state insurance commission, which also hears complaints about slow payment, in 2000 convened a panel which spent a year studying the issue.

It found 20 reasons that insurance companies cite as reasons for slow payment, and made a series of suggestions to speed claims through the process.

Ultimately, Snyder said the use of technology to speed payments will provide some cost-control, however modest, as it reduces the administrative overhead for Hometown Health and health-care providers alike.

Along with the reliance on technology, Snyder said the 30-day payment guarantee required a commitment from Hometown Health's administrative staff to avoid delays in its handling of claims paperwork.