Key takeaways from our conversation with medZERO
- The Affordability Gap: Traditional health insurance often leaves employees facing high deductibles and out-of-pocket costs, forcing many to delay essential care.
- On-Demand Relief: medZERO provides employees with fee-free funds with no credit checks for medical, dental and veterinary expenses.
- Platform Sync: The medZERO platform combines lending, payments and payroll deductions to turn unexpected medical bills into manageable, periodic payments.
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Many people assume health insurance protects them from financial strain, but the reality hits the moment a surprise medical bill arrives. For millions of insured employees, having coverage doesn’t mean they can afford to use it. According to the Financial Health Network 2026 U.S. Trends Report, 31% of U.S. households are considered “financially unhealthy.”
To better understand how medZERO benefits the entire U.S. ecosystem (employers, employees and providers), we met with co-founder and CEO Craig Froude to discuss the company’s origins, challenges and vision for the future of healthcare affordability.
When did medZERO realize insurance and fintech solutions weren’t enough to keep employees out of medical debt?
It all started over breakfast with my co-founder, Howard Michalski, at the Hotel deLuxe in Portland, Oregon. We quickly realized that having health insurance doesn’t mean employees can afford to use it.
My background in healthcare affordability, including founding WellMed (acquired by WebMD) and leading CarePayment, showed me how rising costs and out-of-pocket expenses remained barriers, even for the insured.
Howard brought decades of experience in finance, lending and technology from GE Capital and Fannie Mae to building and leading lending companies of his own. His more recent experience with a payroll-based financing platform inspired our approach to making healthcare more affordable.
That’s why we created medZERO: a platform designed to complement existing U.S. benefit plans (health, dental, vision, pharmacy and veterinarian) by offering employees on-demand, interest-free funds to cover those unexpected out-of-pocket healthcare expenses that insurance doesn’t cover.
What were the toughest business and technical obstacles you faced?
Navigating this new market involved overcoming four main business challenges:
Category Creation: Creating a new benefits category from scratch and convincing employers to rethink how they support employee healthcare.
Employer Education: Educating employers who assume traditional health insurance is enough, while employees still face high out-of-pocket costs (premiums, deductibles and coinsurance) that make even routine care unaffordable.
Communicating Real User Impact: Sharing personal stories about unexpected healthcare bills to highlight the need for on-demand, interest-free funds. Positioning medZERO as an accessible tool that ensures timely care without added financial burden.
Integrating Lending, Payments and Payroll: Connecting a national lending platform, secure funding, and ensuring smooth payroll deduction and loan servicing; all systems had to work seamlessly together. The real challenge was making this complexity feel simple and easy for both employees and employers.
What makes medZERO work?
medZERO stands out with on-demand access, no interest, no fees and no credit check, with repayment through payroll or ACH (an electronic bank-to-bank transfer) for a broad range of expenses. medZERO turns those large expenses into manageable payments.
For example, a $1,000 advance can be repaid over 12 months at about $40 per paycheck, making it far more manageable than paying upfront or using a credit card.
Can you share customer stories where medZERO made a life-changing difference?
One of our earliest users was a warehouse employee who put off knee surgery for two years because he couldn’t afford it, relying on painkillers daily just to get by. With medZERO, he finally got the surgery, returned to work pain-free and thanked us for changing his life. The only barrier was affordability, not access to care.
We’ve seen similar stories, like a customer who accessed $1,200 from the dental chair to complete a root canal. Another got funds for new glasses needed to drive to work, and yet another used our Fido app to pay for emergency pet surgery.
Here’s how a few employees and families describe the difference medZERO makes when unexpected medical and dental bills arise.
“The dental office I went to had never heard of medZERO before. I just showed them the card, and they processed it like any other payment.”
“In the last month, our employees have used medZERO to cover $950 for dental work, $755 for an eye exam, $3,200 for a baby delivery, and $740 for vet care. These costs happen every day, and for many employees, they stand in the way of medical care or create untenable financial stress.”
“My experience with medZERO for my pet has been a lifesaver. Recently, both of my dogs had health emergencies that required costly vet visits. Thanks to medZERO, we could afford the necessary treatments without worrying about the financial burden. I am grateful for the program and how it has helped us during a difficult time financially.”
What are the most valuable lessons you learned from your early pitches to customers and investors?
Building in a space as heavily regulated and high-trust as healthcare requires immense patience.
Make the Impact Personal: Healthcare is massive, complex and critical, but the size of the problem alone won’t convey your value. Don’t let overwhelming market numbers obscure the human element.
Share Real-World Stories: Concrete customer experiences like a warehouse employee getting needed knee surgery or a dental patient affording a root canal help employers immediately grasp the real-world value of affordability benefits.
Lead with the Human Problem: Know your numbers but always lead with the human problem you solve. The most persuasive pitches combine personal relevance with scalable business value.
In two years, what does success look like for medZERO, and what will it take to lower healthcare costs?
Health insurance should mean peace of mind, not a looming financial hurdle. Solutions that turn unexpected medical, dental and veterinary bills into manageable, interest-free payments prove that medical care can be both accessible and equitable. The path forward starts with ensuring that when employees need care, affordability is never the reason they go without it.
Contact medZERO to learn how to add interest-free, fee-free financial relief directly into your employee benefits package.
➔ Follow Craig Froude on LinkedIn
➔ Follow Howard Michalski on LinkedIn
medZERO is a portfolio company funded through the Oregon SSBCI Venture Direct Program, which is managed by Elevate Capital. Pictured: medZERO co-founders Craig Froude (CEO) and Howard Michalski (President)
