A new study by PayMedix, a healthcare financing and payments solution provider, has unveiled compelling evidence of its system’s effectiveness in reducing healthcare costs and improving access to medical care. The longitudinal analysis, which examined data from over 45,000 active members over a 12-month period in 2023, demonstrates that PayMedix’s zero-interest financing model is successfully mitigating the rise in health insurance costs for participating employers.
According to the study, employers utilizing PayMedix’s services experienced a one-year medical cost trend of just 4.0% and a two-year annualized trend of 3.1%. These figures stand in stark contrast to the national averages reported in Milliman’s 2023 study, which recorded 6.4% and 5.4% for one-year and two-year trends, respectively. This translates to a remarkable 40% lower annual rate increase for PayMedix member rates compared to the national average, resulting in substantial savings for both employers and employees.
The study also highlighted the system’s impact on equitable healthcare access. Notably, employee members across all credit score ranges, from 350 to 850+, averaged the same number of annual claims. This finding suggests that PayMedix’s zero-interest financing and flexible payment plans are enabling employees of all financial backgrounds to access necessary medical care without financial barriers.
Another significant revelation from the analysis is the lower inpatient utilization rate among PayMedix members. While the national average for inpatient care claims stands at 22% of all insurance claims, PayMedix members’ inpatient claims accounted for only 14% during the same period. This reduction in hospital-based care not only keeps costs down but also indicates better 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 10% increase in outpatient and primary care visits suggests that employees are more proactively managing their health, potentially avoiding the need for more expensive emergency or inpatient care.
Tom Policelli, CEO of PayMedix, emphasized the significance of these findings, stating, ‘Our data demonstrates what we have believed all along – together with employers and providers, PayMedix can break the cycle of out-of-control healthcare costs and fix our broken healthcare system by providing guaranteed zero-interest financing for employees and prompt full payments to providers.’
The PayMedix system works by providing complete, uncapped financing for all in-network allowed charges that employees may owe to providers. All employees are automatically enrolled, and PayMedix pays participating providers in full. Employees receive a simplified consolidated statement each month and can arrange payments that fit their budgets. This approach not only benefits employees but also streamlines the payment process for healthcare providers, who receive full payment automatically without the need to collect from patients.
Brian Marsella, president of PayMedix, highlighted the positive impact on member satisfaction, noting that their Net Promoter Score (NPS) is three times the industry average. This high level of satisfaction, combined with the demonstrated cost savings and improved access to care, positions PayMedix as a potentially transformative force in the healthcare financing landscape.
As healthcare costs continue to rise nationally, the findings from this PayMedix study offer a promising alternative for employers seeking to manage expenses while ensuring their employees have access to necessary medical care. The model’s success in promoting equitable access to healthcare, regardless of an individual’s credit score, addresses a critical issue in the current healthcare system and may serve as a blueprint for future innovations in healthcare financing.
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