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Health insurance tech startup taps Texas for its launch due to its large uninsured population

California-based Sidecar Health has rolled out its health insurance tech services in Texas. Images via sidecarhealth.com

The health insurance situation in Texas is anemic.

Last year, 17.7 percent of Texans lacked health insurance, according to newly released data from the U.S. Census Bureau. That's the highest rate of uninsured residents among all of the states.

The problem is even more acute in the Houston metro area. In 2018, nearly 1 in 5 residents of the region (18.6 percent) had no health insurance, the Census Bureau says. That's the highest rate of uninsured residents among the country's 25 most populous metro areas.

If you do the math, that translates into more than 5 million residents of Texas, including more than 1.3 million in the Houston area, who have no health-insurance safety net. A startup called Sidecar Health is setting out to reduce those numbers.

Texas recently became the first market for Sidecar Health's insurance plans, which it promotes as being "personalized" and "affordable." By the end of this year, the El Segundo, California-based company hopes to enroll at least 5,000 Texans.

Just as with subscription services like Netflix and Amazon Prime, a consumer can sign up for or cancel their Sidecar Health plan at any time. A member can lock in their Sidecar Health rate for three years.

Technically, Sidecar Health isn't an insurance company. Rather, it manages the insurance plans that it sells.

"Sidecar Health is different from traditional insurance in that we pay a fixed amount for any medically necessary service or prescription drug that you buy," the company explains on its website. "That means if your provider charges more than that fixed amount, you pay the difference. And if your provider charges less, you keep the difference."

Through Sidecar Health, a consumer can visit any healthcare provider, healthcare facility, or pharmacy they choose, as long as self-paying patients with credit cards or debit cards are accepted. This setup allows "complete transparency and control over healthcare costs," says Patrick Quigley, the startup's CEO.

"We make this possible by enabling our members to pay for care when they get it using the Sidecar Health payment card. Because doctors get paid immediately, they offer huge discounts. On average, it is 33 percent or more cheaper than what they charge big insurance companies," Quigley tells InnovationMap. "And because our members are doing the buying by swiping the card, they know what things cost. So you get true transparency and affordability — the way health insurance should be."

Through the Sidecar Health app, a member can see how much healthcare providers in their area charge, enabling them to compare prices.

"Our approach results in a truly affordable option for the millions of people left behind by the traditional model — those who don't qualify for a government subsidy but can't afford the cost of traditional plans," Quigley says in a release.

Sidecar Health is operating throughout Texas without any employees or offices in the state. The company sells its product directly through its website. On the website, consumers can educate themselves on available insurance plans before signing up online. Its Texas insurance plans are underwritten by Eatontown, New Jersey-based United States Fire Insurance Co., part of insurance conglomerate Crum & Forster.

Since its founding in 2018, Sidecar Health has raised $18 million in funding, led by San Francisco-based GreatPoint Ventures and Los Angeles-based Morpheus Ventures.

The startup's offering "is a great example of taking an otherwise complex process and making it simple, which is why Sidecar Health is such a game changer in health insurance," says Joseph Miller, managing partner of Morpheus Ventures.

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Karl Ecklund, left, and Paul Padley of Rice University have received a $1.3 million grant from the Department of Energy to continue physics research on the universe. Photo by Jeff Fitlow/Rice University

Two Rice University physicists and professors have received a federal grant to continue research on dark matter in the universe.

Paul Padley and Karl Ecklund, professors of physics and astronomy at Rice, have received a $1.3 million grant from the Department of Energy for their research to continue the university's ongoing research at the Large Hadron Collider, or LHC, a particle accelerator consisting of a 17-mile ring of superconducting magnets buried beneath Switzerland and France.

"With this grant we will be able to continue our investigations into the nature of the matter that comprises the universe, what the dark matter that permeates the universe is, and if there is physics beyond what we already know," Padley says in a press release.

This grant is a part of the DOE's $132 million in funding for high-energy physics research. The LHC has received a total of $4.5 million to date to continue this research. Most recently, Ecklund and Padley received a $3 million National Science Foundation grant to go toward updates to the LHC.

"High-energy physics research improves our understanding of the universe and is an essential element for maintaining America's leadership in science," says Paul Dabbar, undersecretary for science at the DOE, in the release. "These projects at 53 different institutions across our nation will advance efforts both in theory and through experiments that explore the subatomic world and study the cosmos. They will also support American scientists serving key roles in important international collaborations at institutions across our nation."

In 2012, Padley and his team discovered the Higgs boson, a feat that was extremely key to the continuance of exploring the Standard Model of particle physics. Since then, the physicists have been working hard to answer the many questions involved in studying physics and the universe.

"Over many decades, the particle physics group at Rice has been making fundamental contributions to our understanding of the basic building blocks of the universe," Padley says in the release. "With this grant we will be able to continue this long tradition of important work."

Paul Padley and his team as made important dark matter findings at the Large Hadron Collider in Europe. Photo via rice.ed

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