Why US health insurance outsourcing Philippines?
A multitude of US-based companies have embraced the trend of “US health insurance outsourcing Philippines”, alongside outsourcing their operations to the Philippines for a long time. In fact, the first Business Process Outsourcing (BPO) company in the Philippines was opened in 1992, and the industry has only exponentially grown since then. Various industries ranging from telecommunications to streaming services have taken advantage of the country’s skilled workforce. Notably, health insurance companies are part of this trend, having recognized the benefits of outsourcing to the Philippines over the years
It is incredibly strategic and beneficial for the health insurance sector to outsource to the Philippines. Instead of hiring workers from the U.S., they can turn to the Philippines for jobs such as Claims Officers, Claims Assessors, Sales Support Staff, and more. Continue reading this article and you will see the full reason as to why companies and sectors in the US, including the health insurance sector, continue to outsource their operations to the Philippines.
Cost Efficiency
The main reason why US companies outsource most of their operations to the Philippines is because it is economically sound. The labor cost in the Philippines is marginally lower compared to that of the US. Workers in the Philippines can live off of lower rates due to the country having a lower cost of living compared to the US.
In the Philippines, US companies can pay entry-level workers anywhere from $300 to $400 a month, whereas they will have to pay twice as much when they hire a worker based in the United States.
On top of lower labor costs, US companies also save a ton on operation costs when they outsource to the Philippines. Rent, supplies, software fees, and taxes are generally lower in the Philippines than in any country in the West.
Flexibility on Work Hours
Some BPO companies in the Philippines operate 24/7. This is to accommodate multiple time zones from anywhere in the world. BPO workers in the country have also gotten used to working night shifts and graveyard shifts. Many are even flexible enough to work graveyard shifts in one month, and then work day shifts in the next.
It isn’t only US companies that take advantage of the Philippines’ workforce. European countries and Australia outsource to the country as well. Filipino workers are no strangers to working at any given time of the day to accommodate a client’s time zone. Whether you’re on Eastern Standard Time or Pacific Standard Time, BPO companies and Filipino workers can and will adhere to your schedule.
Filipinos Have Excellent Work Ethics
In the Philippines, there’s a trait called “Masipag”, which literally translates to “hardworking”, which every Filipino aspires or is encouraged to have. This extends to how Filipinos function in the workplace.
Countries such as Japan, UAE, and even the US, value Filipino workers because they are “some of the most hardworking people around.”
Filipinos tend to excel in their fields or work hard wherever they are placed because it is almost a part of their culture. A lot of Filipinos support their families financially. Not only do they pay for the education and sustenance of their spouses and children, they also provide for their mothers, fathers, and siblings.
That being said, the work ethic of Filipinos is world-renowned. They are productive, are excellent team players, and they take initiative whenever necessary. Filipino workers, after an adequate amount of training, can be left to work on their own without seeing a decline in effectiveness. This is why a lot of home-based Filipino workers still strive in any industry they’re in.
Skilled and Fluent Workforce
On top of being hardworking, many Filipino workers are also skilled. Education in the country is not the best in the world, but Filipino workers have acquired several skills from experience and research that allow them to be useful to the teams they belong to.
Insurance companies specifically find Filipino workers’ ability to excel in managing front-end and back-end processes attractive. Filipinos are also technologically literate. They can adjust to any software provided to them. They learn fast and work smart with the tools they are provided.
Filipinos are also known to be excellent English speakers, making them perfect as Customer Support Staff or Claims Advisors. In 2022, the Philippines ranked 20th in EF’s English Proficiency Global Ranking. This also makes the country the second-most English-proficient country in Asia.
Cultural Diversity and Pleasant Employees
The Philippines is exposed to various cultures from all around the world. In its history, the country was colonized by Spain, Japan, and the United States. While the colonization itself was a dark time for the country, when the colonizers left Philippine soil, they left behind many of their cultures and traditions, which modern Filipinos have since adopted.
Adaptability is one of the many strengths of Filipino workers. They can mingle and work with American workers and clients with relative ease. They can adjust to another’s culture since their own is diverse in and of itself. When hired as an advisor, a virtual assistant, or as a customer service rep, Filipinos have no trouble communicating and being empathic towards people of other cultures.
Filipinos are also generally known to be pleasant people. Not only are they hardworking and skilled, they are also friendly and pleasant, making them highly easy to work with.
The BPO Industry is Supported by the Government
Another major factor as to why many US health insurance companies outsource their operations to the Philippines is because the country’s government itself highly supports the BPO industry. After all, the BPO industry is a major contributor to the country’s economy as a whole.
Since 2012, the Philippine National Government has implemented laws that give BPOs universal access to quality, secure, and reliable ICT services, and they provided resources to give PH-based BPOs a global competitive edge.
Telecommuting is also highly encouraged in the Philippines, so much so the country has passed a bill on it. This encouraged many Filipino workers to shift to the BPO industry, giving the US and other countries more access to talented and hardworking employees.
Data Security and Privacy
The Philippines is one of the most outsourced countries in the world. The industry has existed in it for more than three decades. That being said, the country has put up one of the most rigorous data privacy acts for its BPO sector more than most other countries in the world. This is another reason why many health insurance companies outsource in the Philippines.
In 2012, the Philippine government implemented the Data Privacy Act of 2012. This ensures the country’s compliance with natural standards for data protection is resolute and sound.
The BPOs in the country have handled, kept, and processed health insurance records, medical records, and even personal financial data for US companies for years. In fact, some of the biggest companies in the US have trusted Philippine-based BPOs enough to handle their data. Some of the most renowned companies in the world to outsource to the country are the following:
- Apple
- Amazon
- UnitedHealth Group
- Wells Fargo
UnitedHealth Group is one of the biggest healthcare companies in the world. It has since appointed a PH-based BPO company to handle its medical coding, billing, and insurance claims processing, among many others.
Excellent Track Record
Ever since the birth of the industry in 1992, the BPO sector has only grown in terms of scale and revenue. The BPO industry contributes nearly $30 billion dollars per year to the country’s economy. It is also estimated that the Philippines holds about 15% of the global BPO market. It has served companies from the United States, Europe, Canada, Australia, Japan, and many more.
US companies, such as those in the health insurance sector, gain access to over 1.3 million Filipino BPO workers when they outsource to the country. Considering everything listed above, that’s a good set of workers to choose from. Companies that have outsourced to the Philippines have seen massive growth. Their work becomes more streamlined, more flexible, and they are able to adapt to the ever-changing face of the market in the US.
These are things you can expect should you decide to outsource your health insurance operations to the Philippines.
Outsourcing Your VA Needs
By now, you most definitely see the benefits of “US health insurance outsourcing Philippines”, especially when considering outsourcing in the Philippines. Should you require virtual assistants for your practice or organization, the country is also a wonderful forcing house of skilled and hardworking Filipino VAs, perfectly aligning with the needs of US health insurance outsourcing to the Philippines.
VMeDx has recognized this synergy and has fully embraced “US health insurance outsourcing Philippines” by leveraging the skilled virtual assistants of VMeDx, who are medical professionals from the Philippines. Not only are they skilled, knowledgeable, and effective workers, but they are also HIPAA-trained and certified, making them ideal for the specific needs of US health insurance companies looking to outsource.
A Filipino VA will tend to your every need swiftly and effectively, embodying the high-quality standards required for US health insurance outsourcing to the Philippines. You’ll see first-hand the initiative Filipino workers employ in their day-to-day work. On top of all of that, they are also extremely cordial to you and those who will decide to work with your practice, further enhancing the benefits of outsourcing to the Philippines for US health insurance companies.