Learn why cutting off employer access to Paydhealth programs would create significant inflationary pressure on the economy.
Paydhealth primarily works with self-funded healthcare plans established by government entities, tribes, school districts, unions, and businesses for the benefit of their employees or members. Paydhealth advocates on behalf of plan participants to get the medications prescribed by their doctors, make positive changes that will increase their long-term health and happiness, and not get sick or injured in the first place. That is all.
Paydhealth is not a PBM or a TPA. Paydhealth never seeks to substitute another medication for the one prescribed by the patient’s healthcare provider, obtain that medication from a source other than the manufacturer or it’s sponsored patient assistance programs, insert itself into the distribution chain for any medication, or import any medication.
What would happen if Paydhealth was abolished?
The self-funded healthcare plans Paydhealth works with would be immediately hit with significantly higher and unanticipated healthcare costs. Like increasing energy prices, increased healthcare costs are a significant driver of inflation.
But unlike energy price inflation, which tends to push all costs up, including wages, healthcare cost inflation raises prices while reducing real income, making it far more devastating. Why?
Simply ask the question where would the plan sponsors get the money to pay these unanticipated costs?
All Paydhealth’s customers could
Reduce workforce, reducing real income
Reduce wages, reducing real income
Raise premiums, increasing inflationary pressure while reducing real income
Paydhealth’s business customers could
Raise prices, increasing inflationary pressure
Reduce investment, reducing competitiveness
Paydhealth’s government and school district customers could
Raise taxes, increasing inflationary pressure while reducing real income
Cut services, reducing competitiveness while reducing real income
Because the increased costs would be unanticipated and significant, it is likely that all of these strategies would be employed by Paydhealth’s customers. The economic effect of healthcare-driven rising inflation, increased unemployment, and reduced real income would be much more painful than the already damaging inflation experienced over the past few years.