In an era where a few taps on a smartphone can ignite a shopping spree, it's clear that healthcare payment models are lagging far behind.

The cash-pay model has gained traction as a promising alternative to traditional receipt and reimbursement processes.

What is the cash-pay model?

The cash-pay model operates on a simple premise: employers allocate a monthly stipend to each employee, which can be used to cover a wide range of health and wellness services. No inflated prices or surprise fees. Unlike traditional health benefit plans with predefined coverage options, the cash-pay model empowers employees to choose the services that best suit their individual needs.

Pros and cons

One of the primary advantages of the cash-pay model is its transparency, with discounted rates for immediate payment. Employees have a clear understanding of their healthcare budget and can easily track their spending using a virtual corporate card provided by their employer, as with Fijoya. This transparency fosters greater accountability and encourages employees to make informed decisions about their health and wellness.

The cash-pay model promotes a proactive approach to health and wellness. By incentivizing employees to seek out preventive care and wellness services, employers can potentially reduce long-term healthcare costs and improve overall employee well-being. This shift towards preventive care aligns with broader trends in healthcare, emphasizing the importance of early intervention and wellness promotion.

While the cash-pay model offers numerous benefits, it also presents challenges that employers must address. For example, employers must determine the appropriate stipend amount to allocate to each employee and carefully consider how to structure the program to maximize its effectiveness. Additionally, employers must ensure that employees have access to a diverse range of healthcare providers and services to meet their diverse needs.

How does it work at Fijoya?

We provide virtual corporate cards tailored to immediate transaction needs. This is considered a cash-payment model as opposed to the traditional claims based billing and collection system.

The cards are connected to a smart spend management system. Every transaction goes through us and we approve - or don’t approve - each one, based on a clearly-defined stipend and the vendors in our platform. This means - no more uploading, storing or managing receipts.

We provide detailed transaction insights to users and aggregate data to employers, maintaining the balance between transparency and privacy.

What we love about it

• It's end-to-end. Users find the right service, a dedicated card is generated instantly, and the payment to the chosen vendor is made immediately. All of this occurs within our app.

• Personalizing employer-funded payments. Each transaction is tailored to the individual's needs, ensuring that users benefit from a service that feels uniquely theirs, all while being funded by their employer.

• Instant availability and a fast checkout process. Our payment solutions are designed to be at employees' fingertips, ready at the moment you need them. This immediacy and readiness reflect our commitment to providing not just a service, but an experience that’s in line with our broader consumer expectations.

##Point solution vendors, this part's for you##

Fijoya offers a cash-pay model solution for point solution vendors.

Typically, point solution vendors rely on contracts with employers and third-party administrators (TPAs) for payment based on claims. Partnering with Fijoya can offer the best of both worlds. Vendors avoid high customer acquisition costs and the complexity of collection and cash flow cycles. As employees already have access to the funds with Fijoya's stipend-based approach, vendors can enjoy expedited payment within a few days. This streamlined approach simplifies the payment process and opens up new opportunities for vendors to expand their reach and impact.