Financial technology company Paytient announced On Tuesday, it said it had raised $40.5 million in Series B funding, which will help the company grow its benefits that help patients pay for out-of-pocket healthcare costs.
Based in Columbia, Missouri Paying is a creator of Health Payment Accounts (HPAs) that are available for employers, health systems and insurers to offer to employees and members. Users receive a Paytient Visa card without undergoing a credit check and can download the Paytient app. When members use the card for a health service, Paytient pays the provider and then the member chooses a payment plan with no interest or fees through the app. They can choose a reimbursement schedule as well as a payment source, such as through payroll deduction or a bank account.
“We pre-load that card with credit, and then that money just stays at their disposal, which they can use to cover any unexpected out-of-pocket medical, dental, vision or veterinary expenses,” said Brian Worley, co-founder and CEO. “Functionally, Paytient is like a health wallet that’s always full.”
The funding round was led by Mercato Partners Traverse Fund and included participation from Bertelsmann Investments. In total, the company has raised $63 million. Existing investors include Lightbank, Felicis Ventures, Inspired Capital, Box Group and Left Lane Capital.
Mercato Partners Traverse Fund chose to invest in Paytient to ease the financial woes of Americans, said Joe Kaiser, managing director of the investor.
“Working Americans are under more financial stress than ever and need a solution that enables them to access care while taking the stress out of health care costs,” he said in a news release.
With the money, the company plans to advance and expand its product, as well as meet demand from potential employers and insurance partners. It has about 700 partners, including Centene, Cigna, Coupe Health, Beta Health and RR Donnelly. Paytient serves about 700,000 people.
He needs medical help to pay, Worley claims. About 91% of users have experienced problem related to past payments, a recent study by health benefits company Gravie and Wakefield Research found. Paytient aims to solve that problem, Whorley said.
“Our whole goal is to improve people’s ability to better access and afford care,” he said. “This is our mission.
Other companies providing financial assistance for healthcare costs include fintech company Stilt through its product called Onbo and Health of a rectangle through its product called Care Now, Pay later.
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