Tax season is a favorable time to increase deferred treatment and treatment acceptance!
The JPMorgan Chase Institute released a first-ever study showing Americans are using their tax returns on healthcare treatments, like dental work. Reports show a 60% spike in out-of-pocket healthcare spending after tax refunds arrive. Dentists typically receive 27% of healthcare in-person cash payments, however research shows dentists get 32% of the refund-triggered additional spending. Additionally, spending remained up for about 75 days; during this entire period of elevated spending, consumers spent a total of 20% more out of pocket on healthcare than over a comparable period before the tax refund.
The report further identifies the availability of cash vs credit as a key factor: “In the week after receiving a tax refund, out-of-pocket healthcare spending on debit cards increased by 83 percent, while there was no offsetting change to credit card spending—suggesting the cash infusion provided by the tax refund was a major determining factor driving changes in healthcare spending behavior.” So, even when consumers know the size and certainty of a major cash infusion, they still wait until the cash arrives before spending.
How can your practice maximize this time of year?
- Send a targeted email blast or Facebook post encouraging patients to utilize their tax refund on needed/deferred dental care.
- Encourage patients to enroll in your in-house discount plan to maximize their savings. Don’t have one? We can help!
- Enroll in Unitas’ Patient Loyalty Builder service for targeted patient education.
States With The Highest And Lowest Health Care Spending Level In 2016
Click on this map for more state specific info.
© JP Morgan Chase