A comprehensive study conducted by PayMedix has unveiled significant benefits of its innovative healthcare financing solution, showing substantial cost savings for employers and improved access to care for employees across all income levels. The longitudinal analysis, which examined data from over 45,000 active members over a 12-month period in 2023, provides compelling evidence of the long-term advantages of PayMedix's approach to healthcare payments.
One of the most striking findings from the study is the dramatic reduction in the rise of health insurance costs for employers using PayMedix. While the national average for medical cost trends showed increases of 6.4% over one year and 5.4% over two years, according to Milliman's 2023 study, PayMedix member employers experienced significantly lower increases of just 4.0% and 3.1% respectively. This translates to a cost increase rate that is approximately 40% lower than the national average, resulting in substantial savings for both employers and their employees.
The study also revealed a noteworthy trend in healthcare access equity. PayMedix's data showed that employees across all credit score ranges, from 350 to 850+, accessed healthcare services at similar rates. This finding suggests that the zero-interest financing and flexible payment plans offered through PayMedix are effectively removing financial barriers to healthcare, allowing employees to seek care based on need rather than ability to pay upfront.
Another significant outcome highlighted in the study is the lower utilization of inpatient hospital care among PayMedix members. While the national average for inpatient care claims is 22%, according to Milliman's 2023 benchmark, only 14% of PayMedix members' claims were for inpatient care. This reduction in hospital stays not only indicates potential cost savings but also suggests improved overall health outcomes for members.
Interestingly, the study found that PayMedix members had a higher rate of professional care claims (48%) compared to the national benchmark (38%). This increase in primary and preventive care visits could be a contributing factor to the reduced need for more expensive inpatient services, further demonstrating the positive impact of the PayMedix model on both healthcare costs and patient outcomes.
Tom Policelli, CEO of PayMedix, emphasized the significance of these findings, stating that the data proves the company's long-held belief that their approach can effectively address the challenges of rising healthcare costs and improve access to care. Policelli noted that nearly 25% of PayMedix members would not qualify for commercial credit, underscoring the importance of their guaranteed zero-interest financing in promoting equitable healthcare access.
The PayMedix solution works by providing complete, uncapped financing for all in-network allowed charges that employees may owe to providers. The company pays providers in full, while employees receive a simplified monthly statement and can arrange payments that fit their budgets. This approach not only benefits employees but also streamlines the payment process for healthcare providers, eliminating the need for consumer bill collection.
Brian Marsella, president of PayMedix, highlighted the positive impact of their solution on employee satisfaction and retention, noting that their Net Promoter Score is three times the industry average. This high level of member satisfaction, combined with the demonstrated cost savings and improved healthcare access, positions PayMedix as a potentially transformative force in the healthcare financing landscape.
As healthcare costs continue to be a significant concern for both employers and employees, the findings from this PayMedix study offer a promising alternative to traditional healthcare payment models. By addressing both the financial and access barriers to healthcare, PayMedix's approach could have far-reaching implications for improving the overall health and financial well-being of employees while simultaneously reducing costs for employers. As the healthcare industry continues to evolve, innovative solutions like those offered by PayMedix may play an increasingly important role in shaping the future of healthcare financing and delivery.
