EMDEON VIRTUAL CARD PAYMENTS Simplifying the Business of Healthcare
How Much Could You Be Eligible to Receive? By switching provider payments from paper checks to Virtual Card, you could be eligible to receive revenue share payments from Emdeon. Virtual Card at a Glance Using Virtual Card, providers can accept your claims payments electronically using existing payment card networks instead of receiving paper checks. Similar to how providers process co-payments today when patients present a credit card for payment, providers enter card account information into their POS terminals and the funds are deposited virtually immediately into their existing merchant account. Virtual Card are processed similarly to credit card payments in the provider s office, but a physical, plastic card is never issued. The card information is simply printed and mailed to the provider with the Explanation of Payment (EOP). Emdeon Payment Network Virtual Card are just one component of the Emdeon Payment Network, a comprehensive suite of services that combines electronic and print payment infrastructures. By combining our vast network of providers and payers with established relationships with financial institutions, payment card processers and Emdeon owned and operated print centers, Emdeon Payment Network can help give you an edge across all payment distribution methods. Why Multiple Channels? If your long-term goal is to move the majority of your provider payments from print to electronic, you need the flexibility to leverage a variety of provider payment channels during your transition. For example, you may prefer to migrate the majority of your low value claim reimbursements (below a $5,000 threshold) to Virtual Card. Additionally, in instances when providers may opt-out of high value claim reimbursements, you can leverage other low cost payment mechanisms such as Automated Clearing House (ACH) direct deposit and Image Cash Letter (ICL) payments as electronic payment alternatives. And, for any remaining payments, Emdeon can economically print and mail those documents too using our printing and fulfillment services including our unique postage cooperative. One Vendor + One Payment File = Easier Implementation and Reconciliation Instead of using separate vendors to handle your print and electronic provider payments, Emdeon can take your single payment file and convert it into a variety of payment methods to help you efficiently pay your providers. Why is that so important? Having a single partner to handle your provider payments helps you save valuable time and makes it much easier to reconcile payments across multiple payment methods. Emdeon Payment Network Infrastructure Emdeon epayment Mailed Check Virtual Card ACH ICL Emdeon Healthpayers USA Postage Cooperative Emdeon Printing and Fulfillment *Copyright MasterCard Worldwide 1994-2011. All rights reserved. MasterCard is in no way affiliated or associated with Emdeon. 03
Overview Payers like you have been taking notice of Virtual Card recently. Why? Because there are substantial cost savings opportunities when traditional paper check payments are replaced with Virtual Card. Using Virtual Card, not only can you save money, but Emdeon could even pay you based on your Virtual Card Payment transaction volume.** Prior to the arrival of Virtual Card, many payers attempted to route more payments electronically via ACH direct deposit in an effort to reduce the administrative expenses associated with printing and mailing paper checks. Since provider enrollment is required to switch from paper to ACH payment distribution, payers can be limited in successfully delivering the majority of their payments electronically which, unfortunately, can also limit their ability to save money. Some payers were identified as having the potential to receive several million dollars each year. * Your savings * could potentially exceed what you are paying today to print and mail checks. And, we re not talking about just a few dollars in savings here and there. Your savings could potentially exceed what you are paying today to print and mail checks. Based on an analysis of numerous payers paper check-based payment distribution volume (facilitated by Emdeon), some payers were identified as having the potential to receive several million dollars each year based on converting their organization s annual paper check-based provider payments to Virtual Card. Easily Processed by Providers Virtual Card do not require the swiping of a physical card for payment to occur. To send a payment, Emdeon prints the 16-digit card number, payment amount, Card Verification Code (CVC) and expiration date with the provider s EOP. To process the payment, the provider inputs the card information into their POS terminal. It is important to note that the merchant processing fee that providers incur when processing Virtual Card is not dictated by you or Emdeon. This is the same rate that the provider previously negotiated individually with their preferred merchant processor. Unleash Your Ability to Reduce Print Distribution Expenses With Virtual Card, you are no longer held back by the barrier of provider enrollment. This is an important facet of Virtual Card since you can be empowered to switch the majority, or even all, of your provider payments from paper checks to Virtual Card and reap a substantial cost savings as a result. Virtual Card offer mutual benefits. For providers, payment is received quickly and simply without the hassle of program enrollment or paper check deposit procedures. Plus, the transfer of funds is virtually immediate, similar to credit card transactions. For you, there s a significant cost reduction. In some instances, you may receive sizeable payments depending on your Virtual card transaction volume. *Based on an analysis of Emdeon proprietary data. **Estimated potential annual value will be based on converting your organization s annual paper-based provider payments distributed by Emdeon to Virtual card payments as well as certain assumptions on payment conversion rates, provider adoption rates, applicable merchant processing fees and EPN services selected, among other items. *Estimated potential annual value will be based on converting your organization s annual paper-based provider payments distributed by Emdeon to Virtual card payments as well as certain assumptions on payment conversion rates, provider adoption rates, applicable merchant processing fees and EPN services selected, among other items. Your Organization * Contact Us Today! 877.EMDEON.6 (877.363.3666) 05
Provider Acceptance of Virtual Card Virtual Card represent an optional payment solution for providers. Providers may instead choose to receive reimbursements by ACH direct deposit (from participating payers) or paper check. Providers need to call the Emdeon Payment Network support team to verify or update their payment preferences. Providers electing to switch to ACH direct deposit have several convenient options for Emdeon epayment enrollment which are described online at www.emdeon.com/epayment/enrollment. Provider Acceptance of Multiple Payment Methods There may be occasions in which providers receive payments through combinations of payment types as more payers transition to Virtual Card. However, they will never receive reimbursement through a method they have not stated among their payment preferences. For example, Payer A may distribute claims payments to Provider X via Virtual Card while Payer B may still be distributing claims payments via paper checks to Provider X. In this scenario, Provider X is receiving two types of claims payments from two different payers, though never receiving duplicate payments for the same reimbursement. Provider Participation: Opt-Out Model Emdeon has created a turnkey solution. If payers agree to an opt-out strategy recommended by Emdeon, payers are not required to enroll providers into the program. Unless or until a provider alerts Emdeon that they would like to receive an alternate form of payment, providers are automatically set up to receive Virtual Card from participating payers. Virtual Card Payment Security Measures The card information is generated securely and seamlessly integrated into Emdeon s system. Card numbers are activated and assigned expiration dates only when payments are ready to be sent. Card information is sent with EOP s directly to existing designated contacts within the provider organizations. Each payment is assigned its own card number; the monetary value of the Virtual card is equal to the payment amount for which it was issued. Virtual card numbers are credit card numbers, 16-digits in length and assigned specific dollar values, as well as corresponding expiration dates and CVC. Optional General Ledger (GL) clearing account numbers or reference numbers can also be provided. To process transactions, providers must correctly input the card number and expiration date (at minimum). Some POS terminals also require a CVC if a physical card has not been swiped. A card number is valid only up to the total amount for which it is issued. Once that dollar value has been reached, the card number is no longer functional. Thus, providers do not need to keep these numbers on file. Security restrictions can be added to only allow Virtual Card to be processed using a POS terminal associated with specific merchant codes (e.g. Healthcare related merchant accounts). Virtual Card Payment Expiration Date After the expiration date, a Virtual Card Payment is no longer valid. Emdeon will not reissue the number or assign a new expiration date. Just as with paper check depositing, providers bear the responsibility for processing their Virtual Card in a timely fashion. Reporting Availability Emdeon generates two daily reports for Virtual Card. Payment Register Report Used by payers to identify the payment method utilized for each provider payment distributed. This is helpful when payers are using a variety of payment distribution methods. This report is generated following each production release which normally occurs at approximately 10:00 am Central Time each business day. The production release is triggered when Virtual Card Payment information has been generated. This report lists the payer s payments from that day s release and denotes the payer s original check number for each payment to be made and the final method by which the payment will be processed: check, ACH or Virtual Card Payment. Payers have the option to receive Payment Register Reports with or without claim numbers associated with payments. They may access these reports through a secure File Transfer Protocol (FTP) site or receive them by email. Funding File Report Used to notify payers that Emdeon will be withdrawing funds to cover the Virtual Card processed by providers the previous day. This report is relevant for payers who opt for the post-funded model, meaning they choose to fund the Virtual Card after the Virtual Card are authorized (see details in the next section of this document). This report is run each business day at approximately 10:00 am Central Time and reflects debit and credit transactions that occurred the previous day. With this report, payers are notified regarding the total funds that Emdeon will withdraw from their bank account in order fund the Virtual Card, as well as details for each payment represented therein. Payers may access these reports through a secure FTP site or receive by email. 07
Advantages of Virtual Card for Providers Simplifies electronic payment acceptance for providers since neither registration nor enrollment with the payer is required Eliminates the cost and hassle of processing paper check-based claims payments Eliminates the risk of checks being lost or stolen Follows a transaction process most providers are already familiar with requiring minimal instruction to get started Provides an economical method of processing payments since the merchant fees incurred by providers are, on average, of relatively low dollar value and in the range of fees already incurred by providers accepting credit card payments from patients* Accelerates cash flow since transactions are processed virtually immediately Advantages of Virtual Card for Payers Emdeon Virtual Card represent an important step in the right direction to help you cut provider payment distribution costs Emdeon could even end up paying you for provider payments sent via Virtual Card Eliminates the hassle of printing and mailing of checks Processes payments electronically to increase efficiencies and profitability Eliminates the hassle of managing provider enrollment for ACH Virtual Card Payment Routing Overview 1. Provider submits claim to payer. 2. Payer processes the claim. 3. Payer submits provider payment file to Emdeon. (This file may contain data only for providers receiving Virtual Card or it may also include data for all provider payment types.) 4. On behalf of the payer, Emdeon prints and mails the EOP to the provider with the 16-digit card number, payment amount, expiration date and CVC. 5. Provider manually inputs the card number, payment amount, expiration date and CVC into their POS terminal. Once the transaction has been processed for the total amount allotted to the card, the card information is no longer valid. 6. A secure payment transaction occurs virtually immediately. 7. If the post-funded model is selected, the funds are withdrawn from the payer s financial institution account. 8. The payer receives a reconciliation report from Emdeon. 9. Based on transaction volume, the payer may receive a payment from Emdeon.* *Estimated potential annual value will be based on converting your organization s annual paper-based provider payments distributed by Emdeon to Virtual card payments as well as certain assumptions on payment conversion rates, provider adoption rates, applicable merchant processing fees and EPN services selected, among other items. Emdeon is a leading provider of revenue and payment cycle management and clinical information exchange solutions, connecting payers, providers and patients in the U.S. healthcare system. To learn more, visit our website at www.emdeon.com. 2012 Emdeon Business Services LLC. All rights reserved. EMDA1010402 rev 12.12 3055 Lebanon Pike, Suite 1000 Nashville, TN 37214 USA 877.EMDEON.6 (877.363.3666)