The annual cost of the American healthcare billing system has skyrocketed to a startling $325 billion due to errors, fraud, and extreme confusion. These issues have a profound impact on individuals, with medical bills featuring an alarming 80% error rate, 25% of which are simply typographical mistakes. These seemingly minor errors can spiral into life-changing financial challenges, especially for the many Americans living paycheck to paycheck.
Jonathan Anastasia, Executive Vice President of Crypto & Security Innovation at Mastercard, has noted that the prospect of suddenly having to pay $500 to $2,000 out of pocket for medical expenses can lead to homelessness and the inability to provide for one's family.
The root of the problem lies in the complexity of healthcare billing. It's a labyrinth of codes, interpretations, and system expertise that often leaves patients uninformed about the errors on their bills and how to rectify them. In fact, HealthLock's Chief Marketing and Chief Commercial Officer, David Burzynski, asserts that healthcare insurance and billing confound a staggering 56% of Americans.
In response to this crisis, Mastercard has partnered with HealthLock to simplify the tangled web of medical billing. HealthLock, a company dedicated to helping patients manage their healthcare payments, employs machine learning and industry expertise to assist clients in tracking their expenses accurately. Their product focuses on privacy, control, and savings, aiming to protect patients from data breaches, confusion, and overbilling.
One of HealthLock's standout features is its dashboard, which alerts patients to potentially fraudulent healthcare claims. This comprehensive dashboard displays all claims associated with their identification and offers cost-saving solutions. By continuously monitoring claims and utilizing automation, HealthLock has been able to detect and thwart fraud, preventing patients from being taken advantage of due to system errors.
Burzynski reveals that healthcare payment fraud is widespread, with intricate billing systems providing fertile ground for fraudsters to exploit. In 2022, there were a shocking 59 million health records breaches, up from 40 million in 2020. False claims are, however, exposed thanks to the HealthLock dashboard's transparency, which shields patients from exploitation.
HealthLock's solution was established prior to their partnership with Mastercard, but this collaboration has significantly expanded their reach. Initially, HealthLock will serve millions of US-issued HSA and FSA Mastercard cards, with plans to expand even further in the near future.
Mastercard refers to this partnership as an "extension of trust," demonstrating their commitment to going beyond their traditional financial services roots. Anastasia emphasizes that for Mastercard, this collaboration signifies their role as a technology company dedicated to providing solutions that build trust within ecosystems.
By leveraging their experience from other sectors, Mastercard and HealthLock are poised to make a meaningful impact on the chaos that plagues healthcare billing. Anastasia proudly states that their AI and technology solutions protected a staggering 125 billion transactions last year, preventing $35 billion in fraud attacks in recent years. This partnership is an extension of that mission, working to build trust and protect consumers from the pitfalls of medical billing, fraud, and data breaches.
The partnership between Mastercard and HealthLock offers a glimmer of hope in a healthcare system that has long been rife with inefficiencies and complexity by promising a less complicated, more secure future for patients across the country.
