Sidecar Health

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Sidecar Health, Inc.
TypePrivate
IndustryHealth insurance
Founded2018
FoundersPatrick Quigley and Veronica Osetinsky
HeadquartersEl Segundo, California
Key people
Patrick Quigley (CEO)
Veronica Osetinsky (COO)
Stuart Battersby (CFO)
Websitesidecarhealth.com

Sidecar Health is an American health insurance technology company.

History[]

Sidecar Health was founded in El Segundo, California in 2018 by Patrick Quigley and Veronica Osetinsky.[1][2] The pair were previously executives at Katch (formerly Vantage Media), an online advertising technology company and customer acquisition marketplace for insurers.[1][3]

The company launched in 2019 in Texas,[1][4] as the state's large uninsured population offered a sizable potential customer base.[5][4] By the end of the year, Sidecar Health had expanded to Alabama, Arkansas, Florida, Georgia, Kentucky, and North Carolina.[6][7][8]

Sidecar Health initially raised $18 million in funding through venture capital firms GreatPoint Ventures and Morpheus Ventures.[5][9] In July 2020, it raised $20 million in a new round of funding that included Comcast Ventures, Kauffman Fellows, and 23andMe CEO Anne Wojcicki.[10] It closed its Series C funding round in January 2021, led by Drive Capital, at $125 million—bringing it to a $1 billion valuation, often referred to as unicorn status.[11][2] Funding supported staffing and further expansion, along with investment in new insurance products.[12] As of 2021, the company operates in 16 states: Alabama, Arkansas, Arizona, Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, Ohio, Oklahoma, North Carolina, South Carolina, Tennessee, Texas, and Utah.[13][11]

Services[]

Sidecar Health targets those who earn too much to qualify for government subsidies for insurance and do not qualify for employment-funded plans.[6] The company manages and sells fixed indemnity health insurance plans, underwritten by partner insurers, which allow users to pay providers for care directly at the point of service.[1][11][2] The mobile app provides price comparisons between medical services from local providers.[12] Payments are made through a Sidecar Health debit card.[1][11] Such cash payments may be lower than negotiated rates with insurance companies.[11][12] Upon payment, the company pays its share as determined by its reimbursement schedule, and any remaining amount is charged to the user's account.[14] For example, the company reimburses $3 for a blood draw and $153 for a visit to an OBGYN.[14]

Sidecar Health now offers Affordable Care Act plans in the state of Ohio,[15] and its excepted benefits plans are excepted from federal regulations that apply to major health insurance plans.[13] Users may risk significant medical debt from annual payment limits or uncovered major procedures.[6][14] Though the company is headquartered in California, it does not offer services there as it does not meet minimum coverage thresholds.[1] The company does not enroll individuals weighing over 300 pounds or those with serious or chronic pre-existing conditions within the last five years such as cancer, HIV/AIDS, or organ transplants; such people are redirect to HealthCare.gov.[6] A Brookings Institution report criticised this practice for undermining risk pooling.[14]

References[]

  1. ^ a b c d e f Billington, Francesca (August 7, 2020). "SideCar Raises $20M for Its New Approach to Healthcare". dot.LA. Retrieved July 20, 2021.
  2. ^ a b c Chatenay, Victor (January 28, 2021). "Insurtech Sidecar Health scores megaround to become a unicorn". Insider. Axel Springer SE. Retrieved July 20, 2021.
  3. ^ "Katch Sells Its Healthplans.com Business". Business Wire. 2017-10-17. Retrieved 2021-09-15.
  4. ^ a b Mathews, Chris (October 31, 2019). "Lured by large uninsured population, California health insurance co. launches in Texas". Houston Business Journal. American City Business Journals. Retrieved July 20, 2021.
  5. ^ a b Ellingson, Annlee (August 9, 2019). "This week in L.A. funding news: Snap ups debt financing to $1.1B... Dogdrop opens". L.A. Biz. American City Business Journals. Retrieved July 20, 2021.
  6. ^ a b c d Hurtibise, Ron (November 9, 2019). "Cheaper than Obamacare? Budget-priced plans can cost far more if you get sick". South Florida Sun-Sentinel. Tribune Publishing. Retrieved July 20, 2021.
  7. ^ Cavagnaro, Hank (September 28, 2019). "New company aims to help people with cheaper insurance". KVUE. KVUE-TV. Retrieved July 20, 2021.
  8. ^ "Sidecar Health makes a play for North Carolina". International Travel & Health Insurance Journal. Voyageur Publishing & Events. December 13, 2019. Retrieved July 20, 2021.
  9. ^ "Sidecar Health secures $18m in funding; forays into Texas market". Life Insurance International. Verdict Media. August 7, 2019. Retrieved July 20, 2021.
  10. ^ Ellingson, Annlee (July 23, 2020). "Sidecar Health raises $20 million to help users shop for health services". L.A. Biz. American City Business Journals. Retrieved July 20, 2021.
  11. ^ a b c d e Shieber, Jonathan (January 26, 2021). "LA-based Sidecar Health's low-cost, cash-pay health insurance service is now valued at $1 billion". TechCrunch. Verizon Media. Retrieved July 20, 2021.
  12. ^ a b c Chen, I-Chun (January 26, 2021). "Sidecar Health raises $125M to scale 'cash price' insurance model". L.A. Biz. American City Business Journals. Retrieved July 20, 2021.
  13. ^ a b "Sidecar Brings Modern Indemnity Health Insurance to Utah". ThinkAdvisor. ALM Media Properties. March 17, 2021. Retrieved July 20, 2021.
  14. ^ a b c d Young, Christine Linke; Hannick, Kathleen (2020-08-04). Fixed indemnity health coverage is a problematic form of "junk insurance" (Report). Brookings Institution. Retrieved 2021-09-15.
  15. ^ "Explore ACA Plans". Sidecar Health. Retrieved 2021-12-15.
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