Financial technology company Paytient announced Tuesday that it raised $40.5 million in Series B funding, which will help the company grow its benefit that helps patients pay for out-of-pocket healthcare costs.
Columbia, Missouri-based Paytient is the creator of Health Payment Accounts (HPAs), which 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 healthcare service, Paytient pays the provider and then the member chooses a payment plan with no interest or fees through the app. They can select the timeline to pay the cost back, as well as a source for payment, such as through a payroll deduction or bank account.
“We preload that card with credit and then that money just sits available to them that they can use to turn any unexpected out-of-pocket medical, dental, vision or veterinary expense,” said Brian Whorley, co-founder and CEO. “Functionally, Paytient is like a healthcare 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 Americans’ financial troubles, said Joe Kaiser, managing director of the investor.
“Working Americans are under more financial stress than ever, and they need a solution that empowers them to access care while taking the stress out of healthcare spending,” he said in a news release.
With the money, the company plans to advance and grow its product, as well as meet demand from potential employer and insurer partners. It has about 700 partners, including Centene, Cigna, Coupe Health, Beta Health and R.R. Donnelly. Paytient serves about 700,000 people.
There’s a need for medical payment assistance, Whorley argued. About 91% of consumers have experienced a payment-related issue in the past, a recent survey from health benefits company Gravie and Wakefield Research found. Paytient aims to fix this issue, Whorley said.
“Our whole goal is to improve the ability of people to better access and afford care,” he said. “That’s our mission.
Other companies that provide financial assistance for healthcare expenses include fintech company Stilt through its product called Onbo and Rectangle Health through its product called Care Now, Pay later.
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