Discover how your practice can prevent revenue loss during the deductible reset and tips to boost your collections and secure cash flow.
Every January, healthcare practices face the same challenge: a deductible reset, and patients owe more out-of-pocket before their insurance coverage begins. For most health plans, this reset happens on January 1st, resulting in a change in financial responsibility that affects patients and providers.
For 2026, the IRS has announced that HDHP minimum deductibles will increase to $1,700 for individuals and $3,400 for families. Medicare Part A's inpatient hospital deductible will jump to $1,736, while Part B's deductible increases to $283. These rising thresholds mean patients will owe even more before their coverage starts.
The effects on practices are significant because patient hesitation increases as people learn what they are expected to pay before receiving care. Scheduling will start to slow down, and cancellation rates will rise. So, collections take a hit right when practices need steady cash flow to start the year strong.
High-deductible health plans now cover more than half of privately insured Americans, and the trend is not slowing down. Behind the change are two main factors: higher prices for healthcare services and a growing rate of utilization. For patients, this means higher paycheck deductions, higher deductibles, and fewer plan choices.
The good news? Practices can stay ahead of the deductible reset with the right financial tools and patient-friendly payment solutions. The key is reducing financial friction so patients can get the care they need while your revenue stays on track. But to implement the right solutions, you need to understand how patients respond when their deductibles reset.
How the January Deductible Reset Impacts Patient Behavior
Understanding how patients respond to the deductible reset helps practices prepare effective solutions. The behavioral changes are predictable but complex at the same time. When patients realize their insurance won't cover much until they meet their deductible, many choose to postpone care, especially for services they feel are optional or non-urgent. With 2026 HDHP out-of-pocket maximums rising to $8,500 for individuals and $17,000 for families, the financial exposure patients face is significant.
Research shows that nearly one in three Americans has avoided seeking treatment due to cost concerns. January also arrives right after the holiday spending season, when many families have spent a significant amount of money. The combination of post-holiday financial strain and deductible reset creates anxiety that leads patients to cancel scheduled appointments. This pressure is getting heavier. 59% of employers are implementing cost-cutting measures for 2026 health plans, up from 48% in 2025.
Confusion about coverage leads to more billing questions because many patients do not fully understand how deductibles work or their reset dates. This confusion damages the patient-provider relationship and reduces trust, which causes additional phone calls, longer conversations, and frustrated staff. Lower patient financial resources can even lead to hesitation in accepting treatment plans. Even patients who understand their coverage may not feel comfortable talking about their financial situations. Instead of asking about payment options, they delay the care they need.
The main idea here is straightforward: practices must reduce financial friction to sustain revenue during the first quarter. When you make it easier for patients to understand and manage their costs, they're more likely to keep appointments and pay their balances. However, these patient behaviors don't just create inconveniences; they also translate into financial consequences for practices.
Revenue Risk for Practices: What's at Stake?
The January deductible reset creates risks for practice revenue and operations. Patient responsibility now accounts for around 20% of practice revenue, and collection rates continue to decline year after year. As deductibles rise in 2026, this percentage is expected to increase. Think about what's coming: Medicare Part D's out-of-pocket cap rises to $2,100 in 2026, and the standard Part D deductible increases to $615. HSA contribution limits are increasing to $4,400 for individuals and $8,750 for families, and $9,750 for families for those 55 or older. Many patients won't maximize these accounts, leaving them underprepared for January.
The stakes for practices during the deductible reset include:
- Rising A/R as more balances go unpaid: Patients who can't pay immediately let balances age
- Greater staff workload due to payment follow-up: More phone calls, more questions, more time spent chasing payments
- Lower treatment acceptance rates: Patients decline recommended care when they can't afford it
- Disrupted cash flow in the first quarter: Revenue becomes unpredictable right when yearly planning matters most
- Operational stress on front-office and billing teams: Staff burnout increases during the most challenging collection period
In some specialties, 30% of first-quarter revenue comes directly from patient payments. When those payments slow down or fail to arrive, the impact can be felt throughout the entire practice. Recently, nearly half of adults reported worrying about how they will pay for healthcare costs in 2026, with this concern translating into payment delays and avoidance behaviors. Having outlined the challenges, here are four strategies that can help your practice navigate the deductible reset more effectively. We'll start with the foundation of any good financial experience: transparency.
Strategy #1: Improve Cost Transparency With BillFlash PreBill
Financial anxiety decreases when patients know what to expect before their appointment. Surprise billing is one of the main causes of patient cancellations, delayed payments, and patient distress, especially during the deductible reset season. BillFlash PreBill addresses this challenge by sending patients a secure link via text or email to the patient payment portal, where they can view clear, upfront costs before their scheduled visit. PreBill is designed to be used before a bill is even created, or in situations where no formal bill is required, providing patients with cost clarity at the earliest possible moment. When patients understand their financial responsibility in advance, they arrive prepared, both mentally and financially.
PreBill delivers several important benefits for practices navigating the January deductible reset:
- Eliminates surprise billing: Patients know their expected costs before walking through the door
- Reduces cancellations: Informed patients are less likely to cancel at the last minute
- Encourages early payment: Patients can pay via PayWoot before their appointment
- Builds trust: Transparent financial communication strengthens the patient-provider relationship
- Creates conversation opportunities: Staff can discuss payment options with the patient when they review costs before the appointment
With deductibles rising again in 2026, price transparency becomes even more critical. When a patient learns they owe over $1,000 toward their deductible before their visit instead of after, they have time to plan, ask questions, and explore payment options. This transforms a potentially negative experience into an opportunity to show that you care about patients’ financial well-being, not just their clinical needs. While transparency gets patients in the door, what happens when they cannot afford their portion in a single payment?
Strategy #2: Reduce Financial Barriers With Patient-Friendly Payment Options
Affordability remains one of the biggest obstacles patients face when pursuing healthcare. Cost concerns consistently cause patients to delay or skip care, with these delays often resulting in poorer health outcomes and higher costs over time. As 2026 brings increased cost-shifting from employers to employees, this barrier will only get bigger. Offering flexible payment pathways can reduce cancellations and improve treatment acceptance. When patients know they have options, they're more likely to move forward with care versus postponing indefinitely. Patients often prefer a structured, predictable payment plan for known or recurring balances.
BillFlash PlanPay makes this easy to do by allowing practices to:
- Set up installment payments that work for both sides
- Offer clear, upfront terms patients can understand and budget around
- Reduce manual payment follow-up for staff
- Improve collection reliability on consistent or routine services
PlanPay helps patients budget and stay on track, especially when their deductible is high and early-year expenses feel overwhelming. This structure removes uncertainty during the deductible reset. Patients understand what they owe and when, increasing the likelihood of follow-through. Importantly, providers set the rules for PlanPay. You determine the minimum bill amount, minimum payment amount, and maximum duration. Patients receive flexibility within the parameters you specify, ensuring the arrangement meets your practice’s financial needs. While PlanPay works well for smaller, manageable balances, some patients face costs that require a different solution, especially when they're looking at a full deductible in January.
Strategy #3: Offer Integrated Patient Financing Through BillFlash FlexPay
Why FlexPay Matters Most During the Deductible Reset Season
When deductibles reset, patients face their largest out-of-pocket expenses at the worst possible time: right after holiday spending. With 2026 HDHP minimum deductibles set, these amounts must be paid before insurance coverage starts. For many patients, that's not possible in a single payment. The Medicare Part B standard monthly premium rises to $202.90 in 2026, and out-of-pocket caps will continue climbing across all plan types. This means patients need financing options more than ever.
BillFlash FlexPay offers a simple, affordable monthly payment option to help patients manage costs during the deductible reset. FlexPay breaks up large balances into manageable installments with features that work for patients and practices:
- Practices get paid in full: Practices receive payment the next business day, while the patient pays over time
- Quick approvals: Applications can be completed in as little as one minute
- High approval rates: 90% of patients are approved
- No hard credit checks: Applying doesn't impact the patient's credit score
- No fees: Patients aren't penalized for using financing
- 0% interest options: Every approved patient receives at least one interest-free option
- No added administrative burden: Staff don't manage payment plans or collections
- Retain and attract patients: Patients are more likely to move forward with care when they know your practice offers patient financing options.
How FlexPay Drives Revenue Stability
FlexPay turns the January deductible reset challenge into an opportunity. When patients can spread payments over time, they're more likely to say “yes” to recommended care. Practices get payment earlier, even on larger balances, because FlexPay initiates payment the next business day. For providers, the benefits are significant. Funds are deposited directly into your account with no recourse if a patient later defaults. Your practice takes on zero collection risks, and there's no need to call about payments or manage complicated payment plans. For patients, FlexPay provides flexibility for managing healthcare expenses without financial strain. The convenience of predictable monthly installments makes healthcare accessible when patients need it most.
Examples of how FlexPay helps during the January deductible reset:
- Diagnostic procedures that patients would otherwise delay due to upfront cost concerns
- Higher-cost visits that fall early in the year, before patients have made progress on their deductible
- Elective or semi-elective treatments that patients might postpone indefinitely without a financing option
All in all, FlexPay removes the number one barrier and keeps patients in care while protecting your revenue. Having the right financing options is key, but they only work if patients can use them easily. The final strategy is making the payment process itself as easy as possible.
Strategy #4: Make Paying Easy With Multi-Channel, Patient-Preferred Options
Today's patients want the same convenience in healthcare payments that they get everywhere else. Using only paper statements and taking phone-only payments was more common in a time when insurance covered most healthcare costs. In today's environment, where patients face deductibles of over $1,700 and rising premiums, transparency and convenience are no longer optional. They're requirements for financial sustainability.
To meet these expectations, practices need a platform that consolidates all payment options into a smooth experience, like BillFlash Pay.
BillFlash Pay & PayWoot Features
BillFlash Pay provides the modern payment experience patients expect:
- Mobile-friendly checkout: Patients can pay from any device through the online payment portal, PayWoot
- Easy in-office payments: Accept cards, checks, tap-to-pay, Apple Pay, and Google Pay
- QR codes on mailed bills: Patients scan and pay instantly without logging in or remembering passwords
How It Supports the January Deductible Reset Challenges
When paying is simple, patients pay faster. Every point of friction in the payment process costs you revenue, especially during deductible season when patients are already hesitant about costs. Multi-channel options meet patients where they are, increasing collection rates even on higher balances. With this strategy in place, your practice will be better equipped to handle whatever January brings.
Turning January Challenges Into Opportunities
The January deductible reset doesn't have to hurt your practice's financial performance. The key piece to remember is that patients aren't avoiding care itself; they're avoiding unexpected costs and payment obligations they cannot manage. When practices offer flexible financial pathways through cost transparency, structured payment plans, patient financing, and convenient payment options, they protect their patients and their revenue.
Your Practice Doesn't Have to Take a January Revenue Hit
Financial barriers are solvable. The increase in uncompensated care affects your capacity to pay staff and providers, obtain essential supplies, and support health initiatives in your community. Educating patients on the annual deductible reset can reduce the uncompensated care you provide by increasing the likelihood of collecting patient payments. With the right tools, such as PreBill for transparency, PlanPay for structured payments, FlexPay for patient financing, and multi-channel payment options for convenience, your practice can reduce reluctance, increase collections, and maintain full schedules, even when deductibles reset.
Ready to protect your January revenue? Schedule a demo with BillFlash to see how our billing, payment, and collection solutions can transform your revenue cycle.