The last time you went to the doctor’s office and made a payment, did you receive a receipt? Employees with HSA, HCSA or FSA accounts most likely did. These health spending accounts are used to carefully track medical expenses so the patient can be reimbursed. However, reimbursement only takes place after the receipt is submitted, the data is extracted, validated and the expense is approved.
For companies that process health care receipts (such as insurance carriers or debit card providers), the data within these receipts is of high value, providing insight into employee/patient preferences. However, the data extraction process is tedious and error prone — especially considering the strict data privacy and security guidelines that govern the medical industry such as HIPAA.
Veryfi’s AI-driven OCR solution for health and medical receipts can accelerate HCSA and FSA receipt data extraction. Veryfi increases receipt data capture accuracy to 97% or higher, helping enterprises boost efficiency while decreasing costs. With no humans in the loop, Veryfi is GDPR, HIPAA and CCPA compliant, using top-level encryption to ensure sensitive data stays safe and individual privacy is protected.
What Are HSA Receipts, HCSA Receipts and FSA Receipts?
A health savings account (HSA) and its siblings — health reimbursement account (HRA), health care savings account (HCSA) and flex spending account (FSA) — are pre-tax medical savings accounts that help reduce the costs of medical care and products not covered by health insurance (out-of-pocket costs).
Similar to a personal savings account, individual employees own and control these types of accounts, but the IRS sets yearly contribution limits. At the beginning of a tax year or a new job, an employee decides how much money to set aside in an HSA or FSA for the year. Throughout the next 12 months, the employer allocates a certain percentage of each paycheck to this account. Some types of health savings accounts allow unspent money to roll over at the end of the year; others do not.
For health savings accounts, only approved medical expenses and supplies are eligible for reimbursement. But, a single receipt (for example, from a drug store) may include both eligible and ineligible items. Examples of eligible items include prescriptions, over-the-counter medication such as a fever reducer, chiropractic appointments and ambulance transportation.
The employee is responsible for submitting all healthcare savings account receipts to the savings plan administrator for reimbursement. In some cases, an employee may receive a debit card that automatically sends electronic receipts to the administrator. The plan administrator processes the employee data. Whether the receipts are paper or electronic, the HCSA receipt data needs to be extracted, transformed and audited before reimbursement is approved. Proper management of health and flex savings accounts and plans requires accurate employee data. However, manual entry of employee data is error-prone and lengthens the time between the transaction and reimbursement.
HSA/HCSA and FSA Receipt Data Fields
Data fields on HSA, HCSA and FSA receipts include:
- Amount paid
- Payment method
- Products or services received, including quantity, price per unit and tax
- Customer information
The captured flex spending Level 3 data (such as product/SKU description, product code and discount) is helpful for expense categorization and approval as well as advanced consumer marketing analytics. HSA customer data is used to enhance programs such as direct to community marketing and partner marketing campaigns. For example:
- Insurance carriers use the analyzed data to negotiate lower drug prices.
- HR benefits providers of HCSA/FSA accounts offer tailored programs tailored based on FSA customer insights.
- Drug stores, pharmacies and retail fulfillment companies run promotions to increase sales with a better understanding of buyer preferences.
- Debit card providers share HSA insights with brands to create new, targeted marketing campaigns.
This HCSA customer data can also identify items eligible for reimbursement from the savings account. To make the data extraction process faster, easier and more accurate, Veryfi provides a unique feature, Long Receipt Capture, that automatically stitches the receipt image together, no matter how long the receipt is.
Why Use Veryfi’s AI-driven Solution for HSA/HCSA Receipt and FSA Receipt Data Extraction?
Accuracy might be the most important feature in data extraction but speed and security are also essential. Savings plan administrators must process receipts and e-receipts from over 32 million Americans. Accurate, rapid reimbursement is the key to customer satisfaction. And since individual health information is protected by HIPAA and other federal and state privacy regulations in the United States, data security is a prerequisite required by law.
Accuracy, speed and security make Veryfi the logical choice for health insurance companies and plan administrators.
|Veryfi’s AI-Driven Data Input Significantly Increases Data Capture Accuracy
|Veryfi’s AI-Driven OCR Is Compliant and Secure
|Driven by AI, Veryfi Automates Receipt Data Extraction, Maximizes Efficiency and Accelerating Claims Processing
|Manual can yield an error rate of up to 30%. Unlike most data extraction platforms, with Veryfi has no humans in the loop. Veryfi’s 100% AI-driven data extraction solution increases receipt data capture accuracy to 97% or higher.
|Veryfi is GDPR, HIPAA and CCPA compliant, SOC2 Type 2 Certified and uses top-level encryption to ensure data privacy. Veryfi also recognizes international taxes and currencies.
|Veryfi’s automated data extraction combines AI and OCR to reduce the cost of data extraction and transformation. For large enterprises, intelligent automation for back office processes accelerates receipt processing while obtaining timely, actionable insights.
To learn how Veryfi’s AI-driven, secure HSA & FSA data extraction can increase the accuracy of data extraction and accelerate claims processing and reimbursement for your company, sign up for a free trial here.