A recent study conducted by PayMedix, a healthcare financing and payments solution provider, has provided evidence that its system effectively reduces healthcare costs and improves access to medical care. The study, analyzing data from over 45,000 active members in 2023, found that employers using PayMedix's services saw a one-year medical cost trend of just 4.0%, significantly lower than the national average of 6.4% reported by Milliman's 2023 study. This represents a 40% lower annual rate increase for PayMedix members, offering substantial savings for both employers and employees.
One of the study's key findings is the equitable access to healthcare facilitated by PayMedix's model. Employees across all credit score ranges, from 350 to 850+, averaged the same number of annual claims, indicating that the zero-interest financing and flexible payment plans remove financial barriers to medical care. Additionally, PayMedix members exhibited a lower inpatient utilization rate of 14%, compared to the national average of 22%, suggesting better health outcomes and cost savings.
The study also noted a higher rate of professional care claims among PayMedix members (48%) versus the national benchmark (38%), indicating a proactive approach to health management that could prevent more expensive emergency or inpatient care. Tom Policelli, CEO of PayMedix, highlighted the system's role in breaking the cycle of escalating healthcare costs and fixing the broken healthcare system by providing zero-interest financing for employees and full payments to providers.
PayMedix's system simplifies the payment process for both employees and healthcare providers. Employees receive a consolidated statement each month and can arrange payments that fit their budgets, while providers receive full payment automatically. Brian Marsella, president of PayMedix, pointed out the system's high member satisfaction, with a Net Promoter Score three times the industry average, underscoring the model's potential to transform healthcare financing.
As healthcare costs continue to rise, the PayMedix study offers a viable solution for employers to manage expenses while ensuring employees have access to necessary medical care. The model's success in promoting equitable access to healthcare, regardless of credit score, addresses a critical issue in the current system and may inspire future innovations in healthcare financing. For more information on the study, visit https://www.paymedix.com.
