The acquisition of TempoPay by HPS/PayMedix creates a comprehensive healthcare financing and payment solution targeting the growing affordability crisis affecting American workers. This strategic move combines TempoPay's interest-free financing for everyday healthcare expenses with PayMedix's uncapped financing for in-network charges, potentially benefiting millions struggling with medical costs.
Recent data from the PayMedix Healthcare Payments and Financial Disparities Study reveals alarming statistics about healthcare affordability. One-third of Americans find out-of-pocket costs (33%) and deductibles (31%) unaffordable, with the situation worsening for those with lower credit scores. Among individuals with credit scores of 669 or less, 40% report affordability issues. The study further indicates that over half (52%) of insured Americans experience stress related to medical bill payments, with 92% reporting that this stress affects their physical and mental health.
Tom Policelli, CEO of HPS/PayMedix, emphasized the urgency of addressing these challenges, noting that healthcare costs are becoming a disproportionate share of American household budgets. The combined offerings aim to remove financial barriers that prevent employees from accessing necessary care when they need it, rather than when they feel they can afford it.
TempoPay's solution provides interest-free financing for health and wellbeing care that complements existing employer plans. Once activated, employees can use TempoPay VISA® cards to pay for various health-related expenses, including medical care, prescriptions, vision and dental bills, and even veterinary costs for pets. Employers maintain flexibility to set dollar amounts and charge types, while employees can repay bills over time without interest through payroll deductions or bank account withdrawals.
The integration creates a powerful combination addressing both immediate financing needs for everyday healthcare expenses and comprehensive financing for all in-network allowed charges. This approach ensures that all employees, regardless of credit history, can access necessary care without financial repercussions. Brian Marsella, President of HPS/PayMedix, highlighted that one in four PayMedix members would be unable to secure healthcare financing based on their credit scores alone, but with TempoPay, the company can reach more members to help them get and stay healthy.
For HR vendors and industry professionals, this acquisition signals several important developments. The combined solution addresses critical pain points in employee benefits administration, particularly for organizations with diverse workforces including lower-income employees. By offering credit-blind financing, employers can provide more equitable access to healthcare while potentially reducing the administrative burden of managing multiple payment solutions. The expanded reach of these services may also create new opportunities for vendors offering complementary HR technology and benefits administration tools.
The healthcare payment landscape continues to evolve as costs rise and impact household budgets. Solutions like those offered by the combined HPS/PayMedix and TempoPay entity may play a crucial role in simplifying the healthcare payment experience for all stakeholders – patients, providers, employers, and third-party administrators. As employers seek ways to attract and retain talent while managing benefits costs, comprehensive financing solutions that address both affordability and administrative complexity will likely gain importance in the HR technology ecosystem.
