Everyone needs health care, but people rarely know when or where they’ll need it – or how much it will cost. This is the fear and challenge that millions of Americans face when they need unexpected medical care – the bill that follows treatment, which can often be in the thousands of dollars.

As employees catch up on care that they delayed or deferred due to the pandemic, employers have seen health benefit costs rise by 6.2% in 2021 and 3.2% in 2022. These costs are likely to rise even higher in 2023, projected to be at least 5.3%.

Employers traditionally invest in strategies that focus on limiting the growth of healthcare premiums that the company pays, such as introducing high-deductible health plans, shifting more of the plan costs to employees, or directing employees to lower cost care options.

However, employers must balance these efforts against significant pressure to maintain or lower health plan costs for employees. When health plan costs outpace wage growth, the negative effects of cost-shifting impact both employers and employees:

• Employees must dedicate more of their budget to baseline costs such as increased premiums and deductibles. When employees are worried about covering daily expenses, they tend to avoid care due to fear of unexpected costs.
• 48% of insured adults reported avoiding recommended care due to costs. When employees delay care, their unmonitored health conditions worsen and they get sicker. Unwell employees miss more work, are less productive and inevitably experience higher costs when they finally seek treatment.
• Women, Black, Native, and Hispanic people, young people, and low to middle income individuals are more vulnerable to the compounding impacts of reduced household budgets, the most impacted by increased costs, and the most likely to delay or avoid care due to cost.

Competitive health benefits are crucial to recruiting and retaining employees in tight labor markets. As the cost of health plans, healthcare, and daily living increases, employees (even those considered high earners) are getting left behind and they’re leaving their employers for better wages and benefits.

When an employee gets sick, they need help quickly, even if they can’t pay for treatment right away. Two-thirds of medical debts arise after seeking care for an acute medical need. People aren’t price-shopping for care, even on a good day. They make their way to the closest healthcare facility available and deal with the impact later.

According to Peterson-KFF, 23 million people owe what’s considered significant medical debt (more than $250 in outstanding bills). Medical debt affects all demographic groups, but women, young adults, those with low to mid-incomes, and Black and Hispanic people are most affected. 

Three in ten adults report not having the ability to cover a $500 unexpected medical bill without having to borrow money, and one in five adults with health care debt think they’ll never be able to pay it off.

Even financially secure families can struggle to balance co-insurance costs for a major procedure or ongoing treatment – especially if they are hit by multiple health crises at once. That’s why TempoPay provides relief for employees whether they’re struggling to repay a medical bill today, budgeting for a planned medical expense later in the year or want the security of knowing they can pay in an emergency situation.

TempoPay gives employees the power of time and money to address delayed care and affordability in a more effective way than traditional benefits programs such as health savings accounts, flexible spending accounts, health reimbursement accounts, or emergency loans, while also amplifying the benefits of these account-based programs for those who do participate. 

How it works:

1. Employers pay a small monthly fee per employee for TempoPay to offer the program to all employees regardless of their income, credit status, or financial history.
2. In return, employees receive access to a free line of credit with no interest, no fees, and no credit check that they can use to pay for any medical expenses– including existing bills, right away.
3. Employees can repay their balance through payroll deductions, a personal bank account, or even a Flexible Spending or Health Savings Account. Employees are in control of the repayment schedule so they can make payments at a pace that works for their budget.

By offering TempoPay, your employees receive:

• Immediate assistance to pay for deductibles, bills, or other out-of-pocket medical expenses
• Protection from the negative impacts of medical debt and high-cost or predatory lenders
• Flexibility to control repayment schedules to work within individual budgets and preferences

An investment in TempoPay makes a positive impact right away by giving employees an immediate increase in spending power for medical expenses. With the ability to pay, employees are more likely to access the care they need, when they need it. Employees who access necessary care are more likely to become and stay healthy, ultimately leading to reduced overall costs for the employer along with a happier, healthier, more productive workforce.

Budgets and emergencies don’t wait for open enrollment, and neither do we. We make it simple for employers to implement TempoPay anytime during the year, so employees can get the care they need today– no more waiting, no more worries. 

Our team has deep experience and expertise in building benefits programs and financial operations. We’ve seen what works, and more importantly what doesn’t. That’s why we know it’s critical for employers to think differently about how their health benefits work together and close the gap between what their plans cover, and what employees can actually pay for right now.

Tim Danison is the CEO and co-founder of TempoPay, a new way to help employees access and afford the care they need, when they need it. His team is helping companies think outside of health plans when it comes to addressing health equity, affordability, and overall financial wellness by simplifying the payment experience for everyone.