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As healthcare undergoes a rapid digital transformation, we can expect to see the modernization of outdated payment models. The consumer demand for payment convenience has become a top priority for insurers, carriers, and all businesses in the healthcare industry. While selecting health insurance based on health status is important, consumers are also shopping for a plan that fits their digital lifestyle.  

Here’s how Softheon is paving the way in payment innovation: 

According to our previous blog ‘Innovative Ways to Pay for Healthcare’ Sing Rou Lee told us “Consumers are no longer restricted to paying with cash or even point of sale (POS) terminals. We’ve seen a revolution of mobile payment apps like Venmo, Apple Pay, PayPal, etc. A physical card is no longer necessary to pay for goods or services.” In our current Affordable Care Act (ACA) marketplace, Softheon supports several payment channels like physical check payments, interactive voice payment (IVR) payments, and online payments. Within the ACA population, consumers are utilizing the digital space to make payments. Most notably, our data shows an increase in demand for automation with a 10% increase in 2018 for subscription payments in healthcare insurance premiums. In the current age of automation, the less customer action required, the higher the retention rate. 

More recently, Massachusetts Health Connector selected Softheon to modernize their payment and billing operations with members, and enrollment data to transfer to careers. Starting in June 2020, members will be able to pay their monthly premiums by using a debit card, credit card or automated phone system fulfilling a long-time request from members for a wider variety of payment options. Softheon will also develop state-of-the-art billing and notice-delivery processes for the Health Connector. Along with improving member-facing actions through billing, payment and noticing, Softheon has committed to comprehensive financial controls supporting the Health Connector’s operations. Softheon’s procurement response displayed an understanding of exchange needs, along with a mature financial control system meeting Connector requirement for “bank-like” transactions.

Softheon’s premium billing & payment aggregation tool offers an integrated online & banking solution. Our customer-friendly billing experience allows you to manage financial transactions, premium payments & financial reconciliation. As an accessible PCI DSS 3.1 Electronic Payment platform, our solution serves individuals and brokers with multi-channel options and offers the back-end processes needed to continually manage and track their payment statuses. To assist with higher membership retention, we support all payment types including credit cards, ACH & e-Check, and lockbox processing. As a designated Payment Facilitator, we can also conveniently and quickly process payments without any third-party involvement. This prevents payments from building up and means we’re able to deliver outstanding service with unmatched reliability. 

Addressing the demands of the consumer by digitally transforming outdated payment models is a massive incentive for member retention. According to our previous blog Open Enrollment 2019 is Over – What’s Next? Randeep Gupta explained “Taking inspiration from auto insurers that offer incentives for safe driving, why not apply similar concepts to medical insurance? These incentives could be for joining a fitness center, participating in a survey to improve the application process, enrolling in autopay or paperless invoices.” In 2018, Softheon discovered that members with both autopay and incentives had a very minimal chance of getting terminated, as low as 1.6%.  

Allowing consumers to pay at their leisure or enroll in an auto-pay program generates a positive member experience, decreases termination from their plan, and creates a simple, streamlined payment process. 

For more information on Softheon’s payment products, visit our Marketplace page or reach out to Kevin Deutsh, Managing Director at



The views and opinions expressed by the authors on this blog website and those providing comments are theirs alone, and do not reflect the opinions of Softheon. Please direct any questions or comments to

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