Digital Platforms Simplify Healthcare Management and Payments

In the midst of increasing complexity and rising costs in healthcare, digital platforms are emerging as valuable solutions to bridge the gap between financial health and a healthy consumer, states Karen Webster in her article published at PYMNTS. According to research conducted by PYMNTS, a significant number of workers remain unfamiliar with their benefits, indicating the need for progress in managing healthcare more effectively.

During a discussion on «Tough Questions: How Can Digital Platforms and Payments Drive Better Healthcare Outcomes» hosted by PYMNTS, Matt Renfro, the co-founder and CEO of FinTech healthcare platform Lynx, and Karen Frost, the senior vice president of health strategy and solutions at benefits administrator Alight, emphasized the fixable complexity and lack of transparency in the healthcare system.

Karen Frost, who works closely with Alight’s client base of approximately 4,300 employers and their workers, highlighted the challenge faced by consumers in understanding the various components of their employer medical ecosystem, including high-deductible health plans, health savings accounts (HSAs), Flexible Spending Accounts (FSAs), employee assistance programs (EAPs), and wellness programs. She also noted that confusion further intensifies when it comes to healthcare payments.

Matt Renfro shared his personal experience of struggling to navigate the complexities of enrolling in a family health plan, even as the CEO of his own company. He emphasized the importance of adopting a consumer-first approach and leveraging financial technology and retail-like strategies to help individuals comprehend and optimize their benefits without having to engage with multiple entities across different aspects of healthcare.

Employers hold the authority to determine the benefits offered to their employees, and Frost highlighted the growing recognition among employers regarding the need for change. However, she pointed out that a crucial missing element is a comprehensive solution that ties all the components together.

This is where platforms like Alight play a vital role in benefits administration, helping companies determine the most suitable offerings. Simultaneously, platforms like Lynx provide integrated healthcare payments experiences that consolidate and simplify fragmented health payment data into a single, understandable view.

Frost noted that during the pandemic, employers significantly increased the number of health-related programs available to workers. However, the challenge now lies in streamlining the plethora of options to focus on the most relevant programs at any given time.

Renfro, drawing from a collaborative study between PYMNTS and Lynx titled «Healthcare In The Digital Age: Consumers See Unified Platforms As Key To Better Health,» emphasized the need for connected technology as a cure for the existing challenges. By creating an infrastructure that aggregates healthcare and wealth management for companies like Alight, Renfro believes that the process of managing health and finances can be significantly simplified.

By adopting this approach, employers can consolidate numerous programs and payments into a single platform, maximizing returns on investment while simultaneously making healthcare utilization and payments more straightforward for employees.

The concept of a data-driven healthcare benefits and payments ecosystem has garnered positive responses from consumers, with 79% of survey respondents expressing a desire to pay all their medical bills through a single digital platform that can also facilitate other healthcare-related tasks.

Within such an ecosystem, consumers and employers are connected through programmatic APIs, simplifying the process. Renfro proposed consolidating everything into a digital or physical card mechanism, enabling employers to load funds onto platforms like Alight and demonstrate proven return on investment, while ensuring that users stay within the network for their healthcare needs.

Frost emphasized the importance of starting with a seamless user experience that makes it easier for individuals to access care, pay for it, and measure outcomes. By incentivizing the appropriate use of employer-provided healthcare dollars through platforms like Lynx, even hourly workers can benefit from these initiatives.

Renfro further discussed the intersection of healthcare benefits with high deductible plans and health savings accounts (HSAs). He explained that these components are typically offered together, and a platform ecosystem encourages individuals to retain some funds in their HSAs for future health emergencies. Currently, however, 75% of employees exhaust their HSA funds within a year.

Frost described HSAs as valuable healthcare budgeting tools, and Renfro added that Lynx is exploring partnerships with alternative lenders to incorporate installment products into their platform. This seamless online experience not only enhances employee retention but also provides employers with clear visibility into the utilization of health incentives.

Renfro highlighted the significant potential for proving value to employers by integrating health and financial services. He emphasized that this approach is not merely a superficial enhancement but can yield multimillion-dollar savings benefits.

Digital platforms are poised to transform the management of healthcare and payments, closing the gap between financial health and consumer well-being. By unifying fragmented data, simplifying processes, and offering a seamless user experience, these platforms empower individuals to make informed decisions, maximize their benefits, and navigate the complex healthcare landscape with greater ease. As employers recognize the opportunity for change, embracing these comprehensive platforms can lead to improved healthcare outcomes and increased financial security for employees.