Whether you believe in privatization of social security or not, the fact remains that it would cause significant changes within the revenue cycle management industry. The general public don’t hold out much hope when it comes to receiving benefits from the program. In fact, only 37% of those questioned believe somewhat that the social security system will benefit those in the future as much as it does today. What does a privatized social security system look like, and how will this affect social security disability for children and countrywide revenue cycle management processes?
How is Social Security Being Privatized?
The general idea for a privatized social security system is that instead of paying taxes and ultimately receiving benefits in the future, people will make monetary contributions to their own privately managed savings accounts. While this may help those planning for retirement who are earning a significant wage, privatization could have a serious impact on how children are cared for.
The Possible Effect on Children
The current system allows parents to claim social security benefits for their disabled children, as long as they’ve been working and paying taxes for a certain amount of time. Parents under 24 should have been paying social security taxes for at least 1.5 years, and this slowly increases with age to a ten year requirement. Aid is currently given as a set financial amount each month, which parents can put towards any additional aspect of care their child needs. However, privatization could cause difficulties as younger parents may not have the funds available in their accounts to support their children as necessary. It has been discussed that privatization could lead to vouchered social security benefits instead. Parents and their children may have a much more limited choice in where to use these vouchers, and children may not receive the health care and general support they need. Alternatively, block grants may be awarded, and children could receive more or less insurance payments and Supplemental Security Income (SSI) depending on their condition. This could affect a family’s ability to pay for their child’s complex health conditions, both positively or otherwise. Hospital staff should be aware of this and collect the necessary information.
What Does This Mean for Revenue Cycle Management?
For revenue cycle management, healthcare facilities would need to prepare for the possibility of privatization by updating their records. It would be the discretion of each facility as to whether vouchers are accepted as a form of payment for treatment. Documents and online forms will need to be updated to allow alternative payment methods to be processed. Hospitals may find their revenue compromised as a result of privatization, particularly within the pediatric sector. While the older generation may have more funds available to use on healthcare, and require fewer insurance claims to be processed, younger people and children could have the opposite problem. A decrease in funds for child health care may mean overall revenue is reduced, so hospitals need to ensure their systems are efficient and staff levels appropriate to cope with such a change. However, if block grants and insurance coverage work in favor of young disabled people, hospitals could see a beneficial financial impact so long as families continue to choose them as their healthcare provider. There are companies who seek to support healthcare facilities with such issues. It would be best to seek the support of a company who can streamline your hospital revenue cycle management processes. They’ll know how processes can be made more efficient and cost effective, and can also help with the changes in documentation and forms that may be required. Contact a trusted revenue support company for more information on upcoming changes in social security and Medicare/Medicaid legislation and how these could affect your revenue cycle management processes.
The Incoming Privatization Assault, Prospect.org Should Social Security be Privatized?, WSJ.com