Understanding the Real Cost of Healthcare
(and how medZERO Can Help)

We often hear about the “cost of healthcare” in broad terms, but what does that really mean for the average employee? For many, the reality is a constant struggle to manage unexpected out-of-pocket expenses, even with health insurance. Let’s break down a common scenario to illustrate this hidden burden, and then explore how solutions like medZERO can provide much-needed relief.

The Sprained Ankle: A Real-Life Example

Imagine this: You’re playing a weekend soccer game and twist your ankle. It’s painful, and you suspect a sprain. You head to urgent care, hoping for a quick diagnosis and treatment.

You have a High-Deductible Health Plan (HDHP) with a $1,500 deductible and 20% coinsurance. This means you must pay the first $1,500 of your medical expenses before your insurance starts sharing the cost.

The Bill Arrives: A Shock to the System

A few weeks later, you receive the bill from the urgent care facility: $1,725. You haven’t met your deductible yet, so you’re responsible for the majority of this amount.

Here’s the breakdown:

• Total Bill: $1,725
• Deductible: $1,500
• Amount Applied to Deductible: $1,500
• Remaining Balance: $225
• Coinsurance (20%): $45
• Total Out-of-Pocket Cost: $1,500 (deductible) + $45 (coinsurance) = $1,545

The Reality of HDHPs (and the medZERO Solution)

This example underscores the financial strain HDHPs can create. A $1,545 bill for a sprained ankle can be a major setback. This is where medZERO becomes a valuable asset.

How medZERO Helps:

• Interest-Free Payments: Instead of facing a lump-sum payment, employees can use medZERO to pay the $1,545 in manageable, interest-free installments. This transforms a potentially overwhelming expense into a predictable and affordable payment plan.
• Reduces Financial Stress: Knowing you have a way to manage unexpected medical bills reduces anxiety and allows you to focus on your recovery.
• Preserves Savings: By spreading out payments, you can avoid depleting your emergency savings or resorting to high-interest credit cards.
• Accessible Healthcare: medZERO can help people get the care they need when they need it, instead of putting it off due to financial concerns.

The Ripple Effect

This scenario highlights the following:

• Unpredictability: Medical emergencies are unpredictable.
• Financial Stress: The fear of unexpected medical bills can create significant stress, which medZERO directly addresses.
• Access to Care: Some individuals may avoid seeking necessary care due to concerns about cost, a barrier medZERO helps eliminate.

What Can Be Done?

Employers can empower their employees with financial wellness solutions like medZERO, offering a safety net for unexpected healthcare costs. Employees should continue to understand their insurance and save where possible, but also know that solutions exist when the unexpected happens.