When we hear about healthcare costs, it’s easy to imagine overwhelming expenses that disrupt lives and derail financial stability. While that is a reality for some, most healthcare expenses are surprisingly modest; yet they still cause stress and delayed care.
47% of Americans with medical debt owe less than $2,000, and a large amount of those debts are even smaller, often falling below $500. Two-thirds of medical debts are due to one-time or short-term expenses due to an acute health issue. Despite their size, these debts create barriers to care and financial stress that ripple through households and workplaces.
The real issue isn’t just the amount owed—it’s the unexpected timing and lack of payment options that make healthcare costs unmanageable for so many. The truth is that with more thoughtful and flexible payment design, smaller medical debts like these don't have to—in fact, they shouldn’t— exist.
The Heavy Weight of "Small" Medical Expenses
While $500 or $2,000 might not sound insurmountable, smaller debts can carry a heavy weight. With over 100 million adults struggling with healthcare-related bills, even a seemingly minor expense can snowball—especially for households already managing tight budgets or unexpected emergencies.
In fact, these costs often force difficult trade-offs. About one-third of working-age adults said healthcare costs made it harder to afford other living expenses. Even among privately insured individuals, including those with Medicaid or Medicare, 30% reported that healthcare expenses made it more difficult to pay for necessities like electricity, food, or credit card bills.
The issue isn’t just about how much is owed—it’s about how out-of-pocket costs are designed to be paid.
Struggling to Afford Care—Even with Coverage
It’s easy to assume that having health insurance means healthcare is affordable, and that most medical debt stems from the uninsured. However, according to the Commonwealth Fund, many working-age adults report struggling to afford care, even with insurance, of which:
- 43% have employer-sponsored coverage
- 57% have marketplace or individual plans
- 45% have Medicaid or Medicare
High out-of-pocket costs, rising deductibles, and unpredictable medical bills mean that even the insured often struggle to afford care, forcing millions to delay care or take on debt.
The need for a solution is clear—one that goes beyond insurance to ensure healthcare affordability. By rethinking how people pay for care, employers and payers have the power to make healthcare truly accessible.
Payment Design, Not Medical Debt
Imagine if we could erase medical debt before it even starts. The idea isn’t as far-fetched as it may seem. According to a Statista report, a significant share of medical debt stems from unexpected and short-term care needs. So…what if these expenses were managed differently?
Enter: Paytient.
Paytient’s Health Payment Account (HPA) reimagines how people pay for out-of-pocket healthcare costs. Paytient gives members the power to pay their providers as medical expenses arise, so their providers are paid in full. They can then transform those payments into interest-free payments that fit their budgets. Plus, there’s no risk to the employer or payer who sponsors access to Paytient.
Here’s the impact:
- Paytient users save money. Unlike traditional credit options that include burdensome interest and fees, Paytient’s no interest, no fee payment plans mean they don’t spend a penny more than what they paid their provider.
- Better access to care. With Paytient, people can be more proactive about getting the care they need without worrying about affordability. This means no more delaying essential appointments, tests, procedures, or prescriptions.
- Increased financial resiliency. Paytient users are more financially resilient because they’re able to protect their savings and HSA accounts from withdrawals so they can grow over time. This leaves them better prepared for healthcare expenses later in life.
- Providers are paid in full. This approach lets doctors get out of the debt collection business so both patient and provider can focus on the patient’s health.
The Role of Employers and Payers
With 60% of people under age 65 insured through employer-sponsored health plans, employers have a critical role in reshaping how healthcare costs are managed. While traditional insurance offers coverage from the highest expenses, it usually comes with four or five-digit deductibles that present an affordability challenge to many families when care needs arise. However, bundling a solution like Paytient with health insurance changes the equation.
When employees have access to an HPA, they gain peace of mind knowing they can handle the costs of care on their terms. It’s not just a benefit—it’s a game-changer for health equity and financial well-being.
Imagine what this could mean:
- For employees: Less stress, fewer skipped appointments, and better health overall.
- For employers: Higher engagement, improved productivity, and reduced turnover as a result of healthier, happier employees.
A Future Without Medical Debt: Redefining What’s Possible
For too long, our conversations have been focused on getting Americans covered by health insurance and transparency in pricing. However, the costs are too high and unexpected to be manageable. It’s time to shift our focus to how we’re equipping patients to pay.
The numbers tell a clear story: a $500 bill is a mountain when it’s due all at once, but it’s a speedbump when it’s paid in predictable installments with no interest or fees. When plan sponsors take this responsibility off of the providers and bundle or build them into their health coverage, everybody wins.
Paytient’s Health Payment Account (HPA) changes the game, replacing fear and uncertainty with confidence and allowing people to prioritize their physical and financial health. By giving employees a better way to pay for care, we’re not just solving for affordability; we’re building a system where patients have the power to pay for care in a way that doesn’t create debt, stress, and dissatisfaction.
The future of healthcare is in how we pay—with flexible payment design that ensures certainty of affordability and eliminates the need for interest-bearing medical debt. Together, we can create a healthcare system where everyone feels empowered to get the care they need—without fear, without unaffordable moments, and without compromise.
Ready to rethink healthcare payments and eliminate unnecessary medical debt?
Discover how a no-risk, Paytient-backed HPA empowers employees and members to access care with confidence.
Learn more about Paytient’s solution today.
