Consumers as a New Class of Payor

Consumers are a new class of payor: we drive ~$500B of annual out-of-pocket spend, and are being granted more control over healthcare spending budgets through defined contribution and directed spend benefits.

Here, we highlight a few company building opportunities for these "micro payors" that are consumers:

🏗 Healthcare insurance - MA, ACA, ICHRA are examples of consumer-directed insurance categories in which companies like Devoted Health, Thatch, Stride, HealthSherpa are developing the intuitive, compliant, and tax benefit-friendly infrastructure to drive more consumer-friendly insurance shopping experiences

🏗 Ancillary financing products - whether funding below-the-deductible or directed spend purchases, or creating health plan alternatives for the uninsured or underinsured, we see companies like First Dollar, Paytient, Soda Health, Season Health, Cherry, and Sika Health building various flavors of consumer payments products to facilitate ancillary or non-covered healthcare spend.

🏗 Cash pay-optimized services - consumers in control of their healthcare budgets will want access to more affordable and consumer-friendly services options than what they could get through legacy health plan networks, like what Function Health, Ro, Turquoise Health and Levels are building.