Despite having employer-sponsored health insurance, a significant portion of workplace-insured Americans still face prohibitive out-of-pocket healthcare costs. Not only are healthcare costs high—the uncertainty of those costs adds a psychological barrier to seeking care on top of the real financial hurdles many families already face. Rising deductibles and co-pays have created a financial barrier that leaves many delaying necessary care, amplifying both physical and mental health issues.
In a survey conducted by PwC, 60% of full-time employees said that they were stressed about finances, and it’s not just low-income employees—47% of those making $100,000+ a year also reported dealing with financial stress. In particular, respondents stated that financial stress negatively impacted the following areas of their lives:
- Sleep (56%)
- Mental health (55%)
- Self-esteem (50%)
- Physical health (44%)
- Relationships at home (40%)
However, thousands of employers are recognizing the health hazard of health plans that leave employees exposed to large, unknown costs at unexpected times, and they're embracing solutions that remove this uncertainty—in particular, Paytient’s Health Payment Account.
In a recent survey, 98% of Paytient members reported reduced financial stress from having the Paytient card, with 77% saying it significantly reduced their stress.
The Link Between Financial Stress, Healthcare Delays, and Lowered Productivity
Studies have shown that worries about personal health and financial security are directly correlated with higher levels of distress, which probably doesn’t come as a surprise to most of us. What is surprising, though, is that 40% of workplace-insured Americans have deferred care due to cost.
When financial barriers alter people's decisions about getting the care and treatment they need, there’s a trickle-down effect. Imagine: A person needs healthcare due to ongoing stomach problems but hasn’t hit their deductible, and they are uncertain what the out-of-pocket cost will be, which creates a state of worry. So, they delay going to the doctor and begin to stress about finances, as well as their health. Perhaps they go to urgent care, but they’re unable to afford recommended scans to learn what might be wrong. That stress exacerbates symptoms, prompting them to miss work, which increases financial stress even more. The issue is now bigger, more expensive, and will take more time to address.
While the above may be a made-up scenario, it’s not far-fetched. A TIAA Institute report from 2021 showed that employees dealing with financial stress miss almost twice as many days a year than those without it. Moreover, they’re five times more likely to be distracted at work due to that stress. In a study conducted by Nonfiction, employees reported losing an average of 6.3 hours per week while dealing with untreated health issues. This issue is unfortunate, but there are ways to trigger changes that benefit both the employee and their employer.
The Pitfalls of Traditional Employee Mental Health Solutions
Often, when we think of people dealing with stress or anxiety, we jump to the conclusion that they need mental health support. While that support can be invaluable and should be available to those in need, pairing it with a solution that addresses the root cause of the stress can be a surprisingly effective approach to keeping people mentally—and physically—healthy.
Go-to stress management strategies such as diet, exercise, and sleep may be good suggestions for managing day-to-day pressures, but they won’t fix the stress of unaddressed health issues or a lack of reliable childcare. Searching for holistic solutions to address financial stress at its source means that, instead of putting a bandaid over the problem, employers are looking deeper at the root causes and putting in place solutions that may not even seem related to mental health.
As a whole, a benefit program designed this way can help people recover from stress while reducing absenteeism, improving focus, and creating a more resilient workforce. These often-overlooked solutions provide comprehensive support that extends beyond traditional benefits, enhancing overall job satisfaction and retention.
So, what are some of the benefits employers are using to help employees reduce stress?
- Financial Wellness Programs: These may include providing access to financial education, budgeting tools, or financial planning resources.
- Hybrid Work Arrangements: Depending on the role, implementing this type of arrangement could allow employees to cut down on commuting costs, spend more time with family, reduce burnout, and more.
- Health and Wellness Initiatives: This might involve having healthy food options in-office, providing a monthly wellness stipend, or even offering weekly fitness classes.
For stress tied to unaddressed health issues, the most effective stress-reducing benefit employers are turning to is the Health Payment Account.
[I have] the comfort of knowing that if something health-related happens to me or my family, (including our pet!), we've got a cushion that doesn't involve a credit card/account that would add interest or fees. It's been especially helpful at the beginning of the year when our deductibles reset and our HSA account may not have enough funds to cover the high cost of prescriptions needed in January. —Somer Mager, Paytient Member
Paytient’s Solution: Reducing Financial Stress with the Health Payment Account
It’s not always the size of the deductible or the actual out-of-pocket cost that makes people defer care. It’s the fear of an unaffordable healthcare moment that keeps people from walking into their provider’s door. Healthcare costs are inherently unexpected and hard to predict because no one plans to get sick or hurt. Employees need a solution that allows them to confidently seek care, knowing they can pay for care in a way that works for their budget.
How does it work?
Paytient’s Health Payment Account (HPA) is a benefit that pairs with any health plan to turn out-of-pocket healthcare costs into interest-free, fee-free repayment plans. With it, members can design how they want to pay for healthcare expenses. The result is they can access necessary care without the financial stress.
By partnering with Paytient, employers provide their people with the confidence of knowing they have a way to pay. It enables employees to access care when they or their families need it, reducing stress, sickness, and financial strain. In fact, 54% of Paytient users said they would have skipped care if not for the Paytient card.
Paytient member Jason Benjamin wrote, “I think it is one of the best options offered. It lessens the financial burden when visiting the doctor. You already have enough to deal with.” Another user, Crystal Smith, stated, "Due to the economy and the financial stress that takes a toll on us all, this card helps me to pay for the things I really need to be stress-free."
Thousands more have expressed the relief they’ve felt having Paytient in their pocket. The solution has 4.9 stars on Trustpilot and a 90 NPS.
Investing in solutions that improve employee well-being and reduce long-term healthcare costs for employers and employees means everyone benefits, and the numbers speak for themselves. With 98% of Paytient users experiencing reduced financial stress, the HPA provides a practical solution for improving access to care and fostering a happier, healthier workforce.
It pays to be Paytient. Learn more about how you can help employees reduce financial stress, improve overall health outcomes, and save money doing it.
This content is for informational purposes only. It should not be treated as legal, tax, investment, or financial advice. Please consult with your tax or financial advisor for advice specific to your situation.
