Member Wallet: A More Efficient and Convenient Process for Public Transit Fare Distribution
Challenge
As a non-emergency medical transportation (NEMT) broker for health plans, managed care organizations, and state and county governments, MTM Health is committed to being a responsible steward of our clients’ funding sources. We are always searching for innovative ways to encourage members to utilize the most cost-efficient mode of transportation that best suits their physical, mental, and developmental needs, which means public transit is our first mode of choice when appropriate for the member.
Historically, MTM Health and other NEMT brokers have distributed physical public transit fare like individual paper tickets and weekly/monthly passes to members via mail after they call to schedule their trips. In fact, in 2020, 88% of public transit trips processed by MTM Health required mailing physical passes to the member. This process is cumbersome, time consuming, and costly, especially when delivery service has to be expedited to reach the member in time for their trip. This is frustrating for members who sometimes wait up to 10 business days for their fare to arrive in the mail, requires MTM Health to assign a higher mode of transportation when fare will not arrive to the member in time, and leaves little opportunity for MTM Health to verify that mailed fare is actually used to take approved trips.
Solution
In late 2020, MTM Health launched a rebranded and streamlined public transit process called Member Wallet, which makes taking public transit more convenient and efficient for members. Through Member Wallet, MTM Health distributes funds for public transit tickets and passes to members via a pre-paid, reloadable debit card. Instead of MTM Health mailing members physical tickets and passes, members can purchase their own fare before their trip using their MTM-issued debit card.
Here’s how Member Wallet works:
- The member calls MTM Health to schedule their public transit trip
- MTM Health loads funds to pay for the bus pass or ticket onto the member’s card in advance of their trip
- The member uses the funds to purchase their fare online or at a transit depot
Use of the card is controlled by specific Merchant Category Codes (MCCs), allowing MTM Health to restrict where members can utilize the card and its funds. Specifically, MTM Health reduced allowable MCCs from more than 300 to just one. With this coding, members can only use their card to make public transit purchases, ensuring funds are used solely for their intended purpose.
Results
In partnership with a managed care client, MTM Health launched Member Wallet among the health plan’s Pennsylvania membership in December 2020. The plan’s member population in this area are high utilizers of public transit. Approximately 4,900 members utilize Member Wallet for their public transit trips, leading to increased efficiencies, higher member satisfaction and willingness to take public transit, and reduced fraud, waste, and abuse.
| Member Wallet | Traditional Fare Distribution | |
|---|---|---|
| Faster Delivery Time | Funds to purchase transit fare are loaded to the member’s debit card the next day. | Mailed passes and tickets can take up to 10 business days to reach the member. |
| Reduced Processing Time | Total processing time to load fare to the member’s card is less than two minutes, a 97% reduction in processing time vs. the previous process. | For every 21 pieces of transit fare mailed to members, MTM Health staff spend approximately 72 minutes printing and sorting letters, stuffing envelopes, and documenting the trip. |
| Elimination of Fare Inventory | No fare inventory necessary. | MTM Health has to purchase and keep adequate amounts of transit fare on hand for multiple transit systems, which may never actually be used. |
| Reduction in Fraud, Waste, and Abuse | Because spending is restricted to specific MCCs, members can only use the loaded funds to purchase public transit fare; additionally, members can’t use the card at ATMs or to request cash back. As an added layer of protection, MTM Health has full visibility into transaction history to ensure funds were used to purchase transit fare. Additionally, if agreed upon by the client, MTM Health can remove unused funds or deactivate cards at the client’s discretion. | MTM Health is unable to verify if the member ever actually utilized the mailed public transit fare to take their MTM-approved trip. |
| Better Reporting | MTM Health receives thorough reporting that assists with identifying and rectifying potential misuse. | No visibility into fare usage. |
