Margins and Paddings Update

With rising insurance costs, deductibles and copays, some people struggle to afford the out-of-pocket expense that can come with seeking medical treatment. Because of this, some consumers decide not to seek treatment, which could have negative effects on their health and overall well-being. While it’s true healthcare organizations do provide financial assistance and often have charity programs to help offset the costs, most do not have the financial resources to absorb a substantial increase in patient debt that is being driven by consumers selecting high deductible health insurance plans then not being able to pay. The additional challenge is that many hospitals and healthcare providers do not have the means to quickly and accurately determine which patients qualify for charity programs, which are able to pay for care, and which patients need payment plans to help them soften the blow from an unforeseen healthcare event. To help address the problem, Experian provides hospitals, medical offices and clinics with unique data and analytics to provide insight into each patient’s financial situation. By leveraging healthcare-specific predictive models, Experian enables healthcare organizations to easily and efficiently determine which patients qualify for financial assistance programs. In short, Experian is using its data for good by helping make patients aware that they qualify for federal benefits or financial assistance, and effectively pairing them with the right program. From a provider standpoint, the data and insight that we provide not only enables them to determine which patients meet the requirements for Medicaid and other grant or charity programs, but also allows them to do so during the registration process, saving them time and effort on the back-end. Gaining insight into a patient’s financial situation also enables healthcare organizations to minimize or avoid potential bad debt, and improve reimbursement rates by connecting patients with financial programs or setting up a payment plan that fits within their current budget. The bottom line is, in order for healthcare organizations to continue to exist and assist patients in need, it’s important for them to remain financially secure. When healthcare organizations are better able to identify the difference between the patients who can pay versus those that are truly in need of and qualify for financial assistance, everybody wins. The patient doesn’t have to worry about a financial burden that they can’t afford and the healthcare organization can operate without the threat of closure. In order to protect their financial well-being, it’s important for healthcare organizations to identify those patients who qualify for financial assistance and those who can afford treatment. Dan Johnson, Experian’s Executive Vice President of Healthcare Strategy, discusses how big data can help answer that question.

A recent study conducted by Experian showed that a majority of vacationers overspend their budgets and rely on credit cards to provide extra funds. At the extreme end, more than half of millennial vacationers (52 percent) lean heavily on their credit cards, racking up vacation debt they’ll be repaying long after their trip comes to an end. The study also found that vacationers are only too happy to take a holiday from their normal good identity protection behaviors, as well. Whether a preventative action before the trip or a check-in after vacation ends, travelers are skipping easy opportunities to keep private information secure: for instance, only 38 percent of vacationers keep sensitive information protected in hotel safes while on holiday, and a disappointing 65 percent don’t have password protection enabled on their mobile phones. As summer begins, don’t give up on the strides you’ve made to spend responsibly and keep your private information secure. Staying in touch with your budget and protection practices year-round mean you won’t be off course when it’s time for a Labor Day weekend barbecue. View the complete survey findings and methodology here: Experian Summer Travel and Budgeting Survey Report, 2015 from Experian_US

Nowadays, whenever you hear news about the automotive industry, a negative tone tends to pop up. Whether it’s the increase in lending to subprime consumers, or the lengthening in loan terms, the stories lead one to believe that the industry is headed toward another “bubble.” However, that’s not necessarily the case. When we look at the data, the automotive finance market actually demonstrates a strong industry as a whole. Yes, it’s true that subprime lending is up. But, lending has increased across all risk tiers. In fact, loans to super prime consumers have actually seen the largest increase in volume compared to last year, approximately 8.5 percent. To take it a step further, the market share of loans to subprime consumers has decreased from a year ago. At its bare bones, what it means is that consumers are not only purchasing cars, but they are taking out loans to do so. Furthermore, given the percentage of loans extended to each risk tier, we see that lenders have not opened up their portfolios to increased risk. Both of which are positive indications of a strong market. We’ve also seen a steady increase in the length of loan terms. However, before anyone comes to any rash conclusions, it’s not as ominous a sign as it may seem. As cars and trucks have become more expensive to purchase, the easiest way for consumer to keep their monthly payments affordable has been to extend the life of their loans. That said, it’s critical for consumers to understand that by taking out a longer loan, they may need to hold onto the vehicle longer to avoid facing negative equity should they trade it in after a few years. An alternate route many consumers have taken to keep their monthly payments affordable has been leasing. In the first quarter of 2015, we saw leasing account for 30.2 percent of all new financed vehicles – its highest level on record. At the end of the day, consumers are continuing to purchase vehicles and that’s a positive sign for the industry. By gaining a deeper understanding of current automotive financing trends, lenders will be able to use the data and insights to their benefit by better meeting the needs of the marketplace and mitigating the risk of their portfolios. And if they do that, the good times can continue to roll for the industry.