PEPM stands for per employee per month. It is a pricing model commonly used in employer-sponsored healthcare and digital health programs. A vendor charges a fee for every eligible employee in the covered population, regardless of whether that employee actually uses the service.
How PEPM differs from PMPM
PMPM stands for per member per month. The practical difference depends on how the covered population is defined: PEPM is usually scoped to employees only, while PMPM may include dependents or other beneficiaries. Vendor models often use both terms, and the contract math gets unpredictable when the definitions are not pinned down.
Where PEPM shows up
PEPM is common in employer benefits programs, broker-mediated insurance offerings, and B2B digital health platforms sold to HR teams. It is less common in direct-to-consumer telehealth, which is more often subscription or pay-per-visit.
Why operators care
PEPM affects how a service is packaged, sold, forecasted, and supported. Operators picking a pricing model decide more than a number — they decide which buyer they're selling to and how revenue compounds.
Related terms
For the broader pricing context, read our telehealth pricing guide, or visit the glossary index.