in control

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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Building Houston

 
 

Alto is revving up in Houston. Photo courtesy of Alto

Houstonians who are interested in an alternative to Uber — and don't mind giving a Dallas-based company a shot — can now look for a new ride. Alto, the ride-share and delivery company based in Big D, has announced its expansion plans to Houston. The company is now offering pre-scheduled rides; Houston residents will be able to book on-demand rides starting October 1, according to a press release.

As CultureMap previously reported, Alto touts itself as a safer, more consistent approach to hailing a ride. Founded in 2018, Alto brands itself as "the first employee-based, on-demand ride-share company." Employees receive salaries and benefits, each company-owned car is branded with the Alto logo (so riders can be sure they're stepping into the right vehicle), and cloud-based cameras capture both interior and exterior videos of the ride.

The company offers ride memberships and also shops, purchases, and delivers from local brands directly to consumers with same-day delivery available.

For safety during the pandemic, all Alto drivers wear masks and gloves during every trip and each Alto vehicle is fitted with a HEPA cabin air filter which removes 99.9 percent of airborne particles, the company claims. Car interiors are also treated with PermaSafe, an EPA-registered hospital-grade sanitizing mist that is said to kill pathogens like COVID-19.

"Alto is thrilled to announce our expansion plans to Houston and offer the same clean, safe ride-share experience that's revolutionizing the industry to this new market," said Will Coleman, founder and CEO of Alto. "We're confident Houston residents will find Alto to be unlike any other ride-share experiences they've had to date, and find comfort in Alto's leading safety and health precautions, as well as elevated rider experience."

Locals who are interested in more information and getting on the Houston launch waitlist can the official site. The Alto app is available for download on the App Store and Google Play.

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This article originally ran on CultureMap.

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