In times of economic uncertainty, it’s critical to have control over your financial health. This includes maintaining a budget and planning for the unexpected, such as healthcare expenses. Paying for healthcare and saving money for the unexpected is a challenge that bears heavy weight on employees. 92% report that the stress of paying for their medical bills affects their health.
For many, healthcare costs are often factored retroactively into family budgeting, and not always considered when it comes to long-term planning. According to HSA Bank, just 1 in 4 report that they’ve set aside money for unplanned emergency expenses, and two-thirds are concerned about current or future medical expenses.
Interest-bearing medical credit cards and care avoidance
It’s time to rethink the employer’s role in addressing this growing concern. Employers can have a pivotal new role in supporting employees as they navigate these financial challenges. By providing them with approachable financing solutions to pay for their healthcare, including interest-free payment options, employees become more financially resilient and support proactive health-seeking behavior. This approach supports better outcomes and greater health equity.
The high cost of health care is forcing employees to make difficult decisions about their health and financial futures. They may delay or avoid care entirely for fear of unknown or exorbitant bills. Alternatively, they may select consumer financing options that can further damage their financial situation. Medical credit cards marketed to patients through their provider are one concerning example.
While many medical credit cards appear to offer relief by addressing upfront costs for the patient and provider, they often come with opaque terms and high interest rates that are only deferred for a select period. Once that period ends, all of the interest that’s been building during the term of the agreement will be applied to the principal, often at rates as high as 25%.
If an employee using the card can’t pay the balance within the deferred period, they’re suddenly in a worse financial situation. This dynamic has resulted in patients paying over 1 billion dollars in deferred interest charges on medical credit cards in just three years. That’s money that could have gone toward an emergency savings fund, retirement, or kids’ college fund.
Alternatively, more than 1 in 4 adults reported delaying or not getting some form of health care due to cost. Providers, who themselves struggle to collect for their services (less than half of what they are owed gets collected each year), are left with few choices but to share upfront costs with the patient, requiring out-of-pocket payments before care even starts. This dynamic further degrades access and equity.
Those who are uninsured, or in poor health, and Black and Hispanic adults are also much more likely than others to delay or go without health care because of affordability. Care avoidance is not only a matter of access, but of equity. When people wait to access needed care, their conditions become worse, and they show up to an already strained system with conditions that are pricier to treat.
This unsustainable cycle negatively affects employees’ physical well-being and financial future. Traditional employer-sponsored benefits plans are no longer enough. A simpler and more equitable approach to consumer health care financing is needed.
The path to more equitable care and financial resilience
The emergence of interest-free healthcare financing solutions and a renewed emphasis from employers and consultants on improving employees’ financial resilience can have a profound impact on the healthcare system overall. Proactive health care financing improves health outcomes for employees and the employer’s bottom line.
Health equity is often framed as simply increasing access to care, but true equity requires more than just open doors – it demands supporting employees’ access to equitable financing to get them through the door; otherwise, we achieve equity in access but not in outcomes.
If we can shift focus to removing required costs at the point-of-care paired with access to truly interest-free repayment tools, we can ease the financial burden that comes with proactively seeking care.
Results of a recent study on the impact of this type of solution found that employees with low credit scores averaged the same number of annual claims as employees with higher credit scores. This indicates that with access to financing, the kind that doesn’t include any hidden fees, predatory interest rates, or other ambiguous terms, empowers people to seek care when they need it. They can take charge of their health care and plan for a more financially resilient future.
Holistic financing and improved employer benefits
The ripple effects of this equalizing financial benefit are powerful. Employers now have better tools at their disposal to support a more holistic approach to improving health equity. Providing employees interest-free financing with flexible repayment plans available through their employers via benefits solutions providers.
These tools can be implemented outside of open enrollment periods and have almost no technology requirements. In fact, employers who layer interest-free financing into their benefits have seen medical trend increases that are 40% lower than national averages. Companies can improve the health and morale of their employees while saving money that can be reinvested into the business and overall employee wellbeing.
The result is healthier, more productive teams, higher retention, and increased satisfaction with their benefits program. This can be accomplished while removing administrative bloat and saving everyone money. A healthier future starts by addressing the financial needs of the present – employers and their advisors play a pivotal role.
This article was authored by David Kinsey, and originally appeared on BenefitsPRO, July 18, 2025
