The True Cost of Return Mail for Health Plans

Return mail is often seen by many Health Plans as a relatively minor problem that rarely warrants a focused effort to reduce costs or streamline processes. For many, it is seen simply as a cost of doing business. However, when you measure its impact beyond postage and material costs, it is clear that return mail can be a significant revenue drain, it can cause member satisfaction issues and at times it can become a regulatory concern. If ignored, it can lead to increased labor costs, delayed access to services for returned ID cards/Welcome Packets, reduced cash flow and many other problems. Overall return mail can be correlated to member alienation from the health plan resulting in higher levels of member disenrollment and dissatisfaction.

Organizations that recognize the impact of return mail can employ several strategies to minimize its adverse effects. One of these is using mail tracking data available via the Intelligent Mail® barcode (IM™ BC) to access Postal Service™ address change services. Additionally, there are other applications that can enhance performance in several areas throughout an organization.

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