A new study by healthcare financing provider PayMedix provides evidence that its system reduces healthcare costs and improves access to care. The longitudinal analysis of over 45,000 active members in 2023 found employers using PayMedix services experienced a one-year medical cost trend of 4.0% and a two-year annualized trend of 3.1%, compared to national averages of 6.4% and 5.4% respectively from Milliman's 2023 study. This represents a 40% lower annual rate increase than national averages, generating substantial savings.
The study also demonstrated equitable healthcare access across credit scores. Employee members from all credit ranges averaged the same number of annual claims, indicating PayMedix's zero-interest financing and flexible payment plans enable employees of varying financial backgrounds to access necessary medical care. Another significant finding showed PayMedix members had lower inpatient utilization rates at 14% of claims compared to the national average of 22%, suggesting better health outcomes and reduced costs.
PayMedix members showed higher professional care claim rates at 48% versus the national benchmark of 38%, indicating increased outpatient and primary care visits that may prevent more expensive emergency or inpatient care. Tom Policelli, CEO of PayMedix, stated the data demonstrates how the company can break the cycle of healthcare costs by providing guaranteed zero-interest financing for employees and prompt full payments to providers. The system provides complete financing for all in-network charges, automatically enrolls all employees, and pays participating providers in full while employees receive simplified monthly statements with budget-friendly payment options.
Brian Marsella, president of PayMedix, noted their Net Promoter Score is three times the industry average, reflecting high member satisfaction alongside demonstrated cost savings and improved care access. As healthcare costs continue rising nationally, the PayMedix model offers employers a way to manage expenses while ensuring employee access to medical care. The system's success in promoting equitable healthcare access regardless of credit score addresses a critical issue and may serve as a blueprint for future healthcare financing innovations. More information about the study is available at https://www.paymedix.com.
