HPAs: The new way to help employees maintain their physical and financial health

True health equity — promoting equal access to health care throughout the U.S. for all employees, no matter where they work — may seem idealistic, but it isn’t an unrealistic goal. It simply requires more than employer-subsidized health insurance. The fact is, even if an employer pays 100% of premiums, employees often remain on the hook for deductibles and out-of-pocket expenses that lower-earning employees often struggle to afford.

The result? Many employees delay or forgo the health care they need because of cost concerns. This increases the risk of high-cost claims, making matters worse when rates rise down the road.
That’s why it’s vital for brokers to help employers offer all employees a straightforward, equitable way to pay for the care they need to get and stay healthy: health payment accounts.

Let’s explore the ways this innovative benefit can help maintain the financial health of employees when they get sick.

How health payment accounts work

Health payment accounts offer employees a no-fee, interest-free line of credit to pay for out-of-pocket costs of care, repaying those amounts over time in personalized repayment plans that can be adjusted to work for any budget. With an HPA card, for example, employees can convert a $100 doctor visit into 10 payments of $10 each or five payments of $20 each.

This flexibility offers employees the freedom to choose their preferred funding source (e.g., payroll deduction, linked bank account or health savings account (HSA)) and repayment timeline (12-36 months, depending on the employer). What’s more, employers are not responsible for any unpaid balances.

Because the benefit is sponsored by employers, health insurers and hospital systems, using HPA cards for health care transactions does not require employees to pay interest charges or fees. And since no credit check is required for members to receive their benefits and card, HPAs help ensure more employees have access to care without taking on interest-bearing debt.

By making it easier for employees to afford the out-of-pocket cost of care, HPAs support preventive and routine care and medications that help ensure patients’ physical and mental health. This proactive approach reduces the occurrence of severe claims and ultimately enhances employee health.

HPAs can improve productivity

It’s a simple reality: Healthier employees are happier employees, and happier employees are more productive and more likely to stay in their role. So just as HPAs help alleviate disparities in health care access, they help cultivate a healthier workforce with lower costs and better performance.

A patient diagnosed with arrhythmia shouldn’t feel the need to postpone — much less forgo — the follow-up care that can save their life. And someone experiencing sudden dizzy spells shouldn’t avoid going to the emergency room because they fear they can’t afford the visit.

We know that unlocking access to care is an urgent need in our country, but helping support better population health is also good business. When employers reduce the financial burden of staying well, it has an outsized impact on the health of the team and their workplace. Healthier and happier employees are less likely to experience the financial stress that often comes with paying for care and are more likely to be present and productive on the job.

HPAs provide a stable financial floor that empowers employees to seek early treatment for health issues. And when employers make out-of-pocket costs more manageable with the HPA line of credit and flexible, interest-free repayment options, employees are more likely to follow through on the treatment plan their provider prescribes. The results are improved employee retention and fewer absences.

HPAs support employers’ financial wellness goals

It’s no secret that health care costs in the U.S. are high. And health care expenses are almost always unexpected. With Bankrate reporting that 57% of Americans are unable to afford a $1,000 emergency expense and KFF reporting the average annual deductible is close to $2,000 for individual coverage, an unexpected expense can cause the average employee a world of difficulty.

Employers have traditionally offered solutions such as HSAs to address this. And many employees turn to credit cards and financing available through their health care provider’s office. But these options don’t work for everyone, and they often saddle employees with unnecessary interest payments.

For example, only employees enrolled in a high-deductible health plan can contribute money to HSAs — and their HSAs are only helpful to the extent they’ve been able to save funds. Medical credit cards and installment loans often pitched at providers’ offices can carry high interest rates or springing interest that kicks in if you don’t repay the balance during a promotional interest-free period.

However, health payment accounts allow employees to repay at their own pace with no interest or fees and no impact on their credit score. So, whether an employee is hit with their entire deductible in one bill or needs to plan how to manage copayments for ongoing outpatient care, HPAs empower them to turn those expenses into a manageable repayment plan. The result: Employers can help keep their employees financially well while supporting their physical and emotional health.

HPAs boost job satisfaction and help employers retain workers

So far, 2023 has been stressful for even the most successful companies. Although the worst of the Great Resignation may be behind us, turnover continues in the tightest labor market in the past 30 years. And the ever-present specter of a recession makes many businesspeople uneasy.

One potential way to help: Find economical ways to invest in employee satisfaction.

If employers can assist their workers with maintaining good health by offering financial wellness benefits such as HPAs, the chances of those workers having a positive perception of their workplace increase. This, in turn, boosts the likelihood of their long-term commitment to the organization.

One of the best ways to do this is to help your employer clients sponsor an HPA so employees can access care across the benefits portfolio. This might enable an employee to go in for a dental cleaning, new glasses or an appointment with a therapist. Employees who use their benefits are more aware of the value their employer offers in their benefits package and are more likely to stay in their job. In a 2023 study of 68 employer groups across 11,000 employees, there was 30% less turnover among those who actively used their HPA card than among their colleagues who didn’t activate or use the card.

Cultivating a healthy workforce is critical in today’s economic environment. HPAs are a new way to help employees more equitably access all the value in their benefits package, reducing risks and lowering costs along the way.

Chris Labrecque is the chief customer officer at Paytient. He may be contacted at chris.labrecque.innfeedback.com.