In the healthcare industry, managing administrative expenses is critical to earning a profit.

With the onset of the Affordable Care Act (Obamacare) more than five years ago, the challenge of keeping administrative expenses in check ratcheted up significantly. The Administrative Loss Ratios (ALR) and Medical Loss Ratio (MLR) requirements set forth in Obamacare place significant pressure on payers to operate more efficiently and control administrative expenses.

Insurance payers cannot spend more than 15 percent of profits on administrative charges. Further, charges cannot exceed 80 percent of revenue for small group/individual plan premiums on healthcare.

Explains John Gorman, executive chairman for the Gorman Health Group, a consulting firm that works with private sector companies who do business with Medicare, “If you can’t collect the data that the government needs and be able to report it in the format that they want it, you are always going to be leaving money on the table.” See number 4: Invest in Technology.

So how does Foxtrot and automated database management fit into this picture?

Foxtrot frees payers from costly, ineffective, time-consuming paperwork handling that lends itself to making errors by automating database management.

For example, Foxtrot automatically references in-process claims and adjusts fees. With changes, which are inevitable, Foxtrot can send alerts via e-mail and issue credits to their accounts. Like an automated employee, Foxtrot performs the same manual processes as your current claims adjudicators, only automatically and with total accuracy.

If you are continuing to struggle with the challenging administrative requirements mandated by Obamacare, consider automation as a primary resource to battle the high admin costs.

When you think of automating your way to greater profits, consider Foxtrot as your resource of choice.