Sidecar Health
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Type | Private |
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Industry | Health insurance |
Founded | 2018 |
Founders | Patrick Quigley and Veronica Osetinsky |
Headquarters | El Segundo, California |
Key people | Patrick Quigley (CEO) Veronica Osetinsky (COO) Stuart Battersby (CFO) |
Website | sidecarhealth.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[]
- ^ 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.
- ^ 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.
- ^ "Katch Sells Its Healthplans.com Business". Business Wire. 2017-10-17. Retrieved 2021-09-15.
- ^ 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.
- ^ 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.
- ^ 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.
- ^ Cavagnaro, Hank (September 28, 2019). "New company aims to help people with cheaper insurance". KVUE. KVUE-TV. Retrieved July 20, 2021.
- ^ "Sidecar Health makes a play for North Carolina". International Travel & Health Insurance Journal. Voyageur Publishing & Events. December 13, 2019. Retrieved July 20, 2021.
- ^ "Sidecar Health secures $18m in funding; forays into Texas market". Life Insurance International. Verdict Media. August 7, 2019. Retrieved July 20, 2021.
- ^ 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.
- ^ 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.
- ^ 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.
- ^ a b "Sidecar Brings Modern Indemnity Health Insurance to Utah". ThinkAdvisor. ALM Media Properties. March 17, 2021. Retrieved July 20, 2021.
- ^ 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.
- ^ "Explore ACA Plans". Sidecar Health. Retrieved 2021-12-15.
- American companies established in 2017
- Financial services companies established in 2017
- Health insurance companies of the United States