A new company aims to help employees afford medical expenses and make them, their employers and healthcare providers winners in the process.
MedPut pays participating employees’ medical expenses and gets repaid through payroll deductions for up to a year, founder Stefan Sharma said.
Sold as an employee benefit, employers enroll staff who agree to payroll modifications into the program. When they incur an expense up to a certain amount, the bill is sent to MedPut, who pays it, often after a negotiation service negotiates a discount as high as 30 per cent, Mr. Sharma said.
“What that effectively does in transfers MedPut’s risk from a consumer loan to a loan where the risk of a default is predicated on the employee being in a job.”
MedPut is designed to not overly strain an employee’s finances, Mr. Sharma explained. The money loaned can never exceed 10 per cent of that employee’s post-tax monthly salary.
Without this option, many people are forced to sell items or use credit cards, Mr. Sharma added.
MedPut also allows people to be more proactive with their health, Mr. Sharma explained. Because of cost, many people forgo treatment which can develop into something more serious if left unchecked.
That not only benefits them, but also insurance companies, employers and even health care centers, Mr. Sharma said. Insurance companies are more likely to incur losses on larger claims. Employers benefit from healthier and less distracted employees who are absent less often. Health care centers aren’t particularly good or quick at collections so an option which quickly gets them their cash is appreciated.
Mr. Sharma said lowering personal debt is a top priority for his generation. Thanks to healthcare and student loan repayment costs, they are less optimistic about saving for retirement.
“I want to build products that can impact someone’s life,” Mr. Sharma said.
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