HealthTransaction Network has begun operations with the first national,
electronic healthcare transaction network in the United States. The
program, started by electronic transaction entrepreneur Joseph Wolfson,
came to life recently with the launch of low-cost basic services at
community healthcare facilities, a new technologically advanced identification
card, and an electronic transaction network to facilitate transactions
between consumers and healthcare providers.
With the launch of this network, individuals can now get discounted
healthcare services at five regional hospital systems and urgent care
centers throughout the western New York region that participate in the
new electronic network.
Through the new network, consumers can now access routine physical examinations,
eye care, dental exams, mammograms, blood pressure screenings, prescription
drugs, and other services that might otherwise be out of their reach.
Services are provided on a pay-as-you-go basis, with no billing or insurance.
The initiative, under development for 16 months since its announcement,
is aimed at uninsured or underinsured individuals, who can’t afford
coverage for even primary medical care. The goal is to enable them to
get wellness services, so they can prevent more serious conditions.
So far, participating hospitals include TLC Health Network’s Lake
Shore Health Center in Irving and Tri-County Memorial Hospital in Gowanda,
Niagara Falls Memorial Medical Center, Medina Memorial Health Care System,
and MedFirst Urgent Care in Amherst. Sharma Family Medicine and Lake
Shore Eyecare, both in Irving, are also signed on. In all, the institutions
have 21 locations.
Additionally, Bertrand Chaffee, Brooks Memorial, and Western New York
ImmediateCare are expected to join shortly, along with five pediatric
practices, one dental practice, and an occupational health group.
Costs vary depending on the provider, with a routine physical exam for
illness costing $45 at TLC but $62 at Niagara Falls and $90 at MedFirst.
A woman’s annual physical is $88 to $90, while mammograms are
$76 or $85. X-rays are as low as $40 at TLC’s sites. Flu vaccines
are free at the hospitals and $15.50 at MedFirst.
TLC also has a $20 dental exam and $40 cleaning, as well as a $25 basic
eye exam and $69 eyeglasses.
The only other cost is $10 to first get the ID card and $10 a year to
renew it. The card can be obtained at any of the hospitals, and is good
at any of the participating facilities. Prices are posted online at
www.htnnet.com.
Even consumers with insurance can benefit, Wolfson says, noting that
some plans require a consumer to pay a high deductible before major
coverage kicks in. Also, not all plans include dental, vision, or drug
coverage.
The launch of the new system marks the culmination of a five-year odyssey
for Wolfson, an ATM industry veteran known for previously launching
the MetroTeller and Cartel card networks before shifting gears in 2003.
That’s when he saw a chance to modernize the health insurance
business, which has remained a time-consuming and paper-driven business.
His plans for Health Transaction Network initially called for automating
insurance verifications, referrals, and claims processing using “smart
cards” with microchips to identify patients at a provider’s
office, confirm their eligibility for coverage, and begin seeking reimbursement
from insurers. But the idea didn’t catch on.
The new idea, unveiled in October 2007, bypasses the insurers and proved
attractive to area hospitals, especially in outlying areas. That’s
because they get paid right away, by cash, check, or credit or debit
card. There’s no billing or paperwork and no claims processing,
eliminating the delay and administrative costs that typically account
for 20% to 30% of the cost of a medical transaction.
Additionally, the providers benefit from increased business, seeing
patients that might not normally even come in for treatment. And it
could lessen the burden on emergency departments, as people getting
wellness or basic sick care don’t need to go to the ED for such
treatment.
To join, consumers must go to one of the hospitals or urgent care sites,
where they will receive what looks like a gold credit card, with their
photo on the upper right corner.
More importantly, though, the “smart” card features both
a magnetic stripe on the back and a microchip in the front. The stripe
has the person’s network account number so that their treatments
among the various hospitals are linked. The chip will contain a digitized
version of the person’s fingerprint, encoded when they sign up.
The digital image is used to verify their identity when they obtain
services and is compared against the person’s actual fingerprint
when they press down on a finger scanner. It can only be read with a
special card reader and computer program set up at the respective medical
offices, but is not retained.
Besides the basic system, the company also offers “stored-value”
small business and gift cards that are “reloadable.” A small
business that can’t afford full insurance premiums for its workers
could instead provide a lower-cost catastrophic plan and then give employees
the HTN card, with money “loaded” on it every pay period.
Stored value accounts are managed by Lake Shore Savings Bank.
