A new survey from Medscape finds that physicians are happier with insurance company reimbursement than government programs. 

According to new data, 40 percent of physicians said they feel that private payers materially affect their treatment decisions. The survey noted that doctors and their employers feel they have more leverage in the negotiations with private insurers, allowing them to better comply with industry guidelines and provide more efficient service to patients. 

“With our clients, I experience a lot of contention about the level of the rates and also about the overall reimbursement process,” said Wayne Gibson, senior managing director and leader of health care risk management and advisory at FTI Consultant.

Additionally, doctors in the survey responded that they were several times more likely to report insurance companies' reimbursement rates to decline over the past five years. This is often due to concerns about keeping pace with inflation and the administrative burden involved with reporting. 

An increase in the popularity of high-deductible plans has resulted in higher patient balances that are more difficult for providers to collect than private payers, the report noted. 

Six in 10 physicians reported that their support staff is devoting more time to billing compliance than 5 years ago. Meanwhile, one-third of physicians noted that staff hours devoted to processing prior authorizations have also increased in the past 5 years. 

Nearly 40 percent of physicians said that private payers wielded “quite a bit” or a “great deal” of influence over their treatment decisions. Additionally, half of doctors surveyed said they think their employer has a positive relationship with insurance companies.

This may be due to the bargaining power of insurance companies. According to David Brueggman, director of commercial health at Guidehouse, a management consulting firm, insurance companies may give the impression that there is no room for leverage; however, they can when it comes to reimbursement rates.  

He added that he was surprised there were no more requisitions from patients looking for a letter of medical necessity. He added that over time, the management of requests and reimbursements will become more automated.

“This is an area where technology solutions become more prevalent, it will become a lot easier for providers to work these suits in a near-automated process,” he said.