Mastercard, one of the world’s leading payment network processors, has announced a groundbreaking solution for medical claim payments in India. The company has partnered with one of the leading financial institutions in India and Remedinet, a cloud-based health tech platform that simplifies the back-end of cashless claims by connecting hospitals, insurers and third-party administrators.
How it works
The solution leverages Mastercard’s innovative virtual card technology, which makes complex B2B payments fast, easy and secure. The end-to-end solution works by seamlessly embedding virtual cards within the health tech platforms that connect payers and healthcare providers, such as Remedinet, using API connectivity.
When a patient is admitted to a hospital, the hospital sends the claim details to the insurance company through Remedinet. The insurance company verifies the claim and approves the amount. The insurance company then issues a virtual card with a unique number and the approved amount to the hospital through Remedinet. The hospital can use the virtual card to receive the payment instantly through any point-of-sale terminal or online gateway.
Benefits for healthcare providers and insurance companies
The solution aims to bring relief to healthcare providers and insurance companies strained by the current cashless claim settlement process, which is often fragmented, slow and inefficient due to legacy systems and manual processes. The solution offers several benefits, such as:
- Faster payments: The virtual card enables instant payments to healthcare providers, reducing payment delays and improving cash flow.
- Enhanced visibility: The virtual card provides real-time information on the claim status and payment details, enabling easier reconciliation and reducing disputes.
- Reduced costs: The virtual card eliminates the need for paper checks, bank transfers and other intermediaries, lowering operational costs and fraud risks.
- Increased security: The virtual card is protected by Mastercard’s advanced security features, such as tokenization, encryption and dynamic authentication.
A first of its kind solution in India
The solution is available to all insurance-network hospitals in India on the Remedinet platform, which covers over 10,000 hospitals across the country. The solution is expected to scale up rapidly as more insurance companies and healthcare providers join the platform.
Raja Rajamannar, chief marketing and communications officer and president, healthcare, Mastercard, said: “The healthcare industry is at an inflection point, with evolving digital-first expectations challenging industry norms. Around the world, we’ve been working closely with healthcare organizations to better serve their partners and patients with a range of products and services well-tuned to drive simplicity, convenience and efficiency in payments and beyond.”
Munish Daga, CEO of Remedinet, said: “We are delighted to partner with Mastercard to introduce this revolutionary solution for medical claim payments in India. This solution will transform the way healthcare providers and insurance companies interact with each other, bringing more transparency, speed and convenience to the entire ecosystem.”