Sidecar Health Explained

Sidecar Health, Inc.
Type:Private
Industry:Health insurance
Founded:2018
Founders:Patrick Quigley and Veronica Osetinsky
Hq Location:El Segundo, California
Areas Served:-->
Key People:Patrick Quigley (CEO)
Veronica Osetinsky (COO)
Stuart Battersby (CFO)
Owners:-->
Website:sidecarhealth.com

Sidecar Health is an American health insurance company headquartered in El Segundo, California. The company offers insurance plans serving the large group, ACA and IFP markets in 18 states.[1] [2]

History

Sidecar Health was founded in El Segundo, California in 2018 by Patrick Quigley and Veronica Osetinsky.[3] [4] The pair were previously executives at Katch (formerly Vantage Media), an online advertising technology company and customer acquisition marketplace for insurers.[3] [5]

The company launched its first insurance product in 2019 in Texas,[3] [6] as the state's large uninsured population offered a sizable potential customer base.[6] By the end of the year, Sidecar Health had expanded to Alabama, Arkansas, Florida, Georgia, Kentucky, and North Carolina.[7] [8] [9]

Sidecar Health initially raised $18 million in funding through venture capital firms GreatPoint Ventures and Morpheus Ventures.[10] [11] In July 2020, it raised $20 million in a new round of funding that included Comcast Ventures, Kauffman Fellows, and 23andMe CEO Anne Wojcicki.[12] 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. Funding supported staffing and further expansion, along with investment in new insurance products.[13] As of 2022, the company operates in 18 states: Alabama, Arkansas, Arizona, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Mississippi, Ohio, Oklahoma, North Carolina, South Carolina, Tennessee, Texas, and Utah.[14] [15] [16]

Services

Sidecar Health offers plans for multiple markets, including employer sponsored, ACA and IFP. All Sidecar Health insurance products are built on users paying providers for care directly at the point of service.[3] [15] [4] The website and mobile app provides members their benefit amounts, and offers local market data including prices and reviews among local providers.[13] The company provides members with a Sidecar Health VISA debit card to pay for services.[3] [15] Such cash payments are often lower than negotiated rates with insurance companies according to academic studies.[17] [15] [13] Upon payment, the company pays its share as determined by its reimbursement schedule, and any remaining amount is charged to the user's account.[18] For example, the company reimburses $153 for a visit to an OBGYN.[18]

In 2022, Sidecar Health launched Affordable Care Act plans in the state of Ohio,[19] and a fully-insured employer-sponsored product in Ohio.[2] In addition, it continues to market its Access Plan, which is an excepted benefit plan under the ACA[20] in 18 states and is underwritten by partner insurers. A Brookings Institution report suggested that excepted benefits products like its Access Plan may undermine risk pooling.

Notes and References

  1. Web site: Cash-price payer Sidecar Health enters Illinois, now reaches half of US . 2022-05-17 . beckerspayer.com . 2022-03-09 . https://web.archive.org/web/20220309011249/https://www.beckerspayer.com/payer/cash-price-payer-sidecar-health-enters-illinois-now-reaches-half-of-us.html . live .
  2. Web site: Minemyer . Paige . 2022-04-11 . Insurtech unicorn Sidecar Health launches new group employer plan in Ohio . 2022-05-17 . Fierce Healthcare . en . 2022-05-21 . https://web.archive.org/web/20220521153148/https://www.fiercehealthcare.com/payers/insurtech-unicorn-sidecar-health-launching-new-group-employer-plan-ohio . live .
  3. News: Billington . Francesca . August 7, 2020 . SideCar Raises $20M for Its New Approach to Healthcare . dot.LA . July 20, 2021 . July 27, 2021 . https://web.archive.org/web/20210727154949/https://dot.la/sidecar-raises-20m-for-its-new-approach-to-health-care-2646804776.html . live .
  4. News: Chatenay . Victor . January 28, 2021 . Insurtech Sidecar Health scores megaround to become a unicorn . Insider . Axel Springer SE . July 20, 2021 . August 4, 2021 . https://web.archive.org/web/20210804185729/https://www.businessinsider.com/sidecar-health-reaches-unicorn-status-after-major-funding-round-2021-1 . live .
  5. News: Katch Sells Its Healthplans.com Business . Business Wire . 2017-10-17 . 2021-09-15 . 2021-09-15 . https://web.archive.org/web/20210915212609/https://www.businesswire.com/news/home/20171017005989/en/Katch-Sells-Its-Healthplans.com-Business . live .
  6. News: Mathews . Chris . October 31, 2019 . Lured by large uninsured population, California health insurance co. launches in Texas . Houston Business Journal . American City Business Journals . July 20, 2021.
  7. News: 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 . July 20, 2021 . June 29, 2021 . https://web.archive.org/web/20210629222741/https://www.sun-sentinel.com/business/fl-bz-should-middle-income-earners-consider-obamacare-alternatives-20191108-wqam2vgmsvbhxgo44xi53qb7o4-story.html . live .
  8. News: Cavagnaro . Hank . September 28, 2019 . New company aims to help people with cheaper insurance . KVUE . KVUE-TV . July 20, 2021 . August 4, 2021 . https://web.archive.org/web/20210804185728/https://www.kvue.com/article/news/health/sidecar-health-aims-to-help-people-with-cheaper-insurance/269-a514f311-1b11-422f-a423-b37a7e38e5ee . live .
  9. News: December 13, 2019 . Sidecar Health makes a play for North Carolina . International Travel & Health Insurance Journal . Voyageur Publishing & Events . July 20, 2021 . August 4, 2021 . https://web.archive.org/web/20210804191231/https://www.itij.com/latest/news/sidecar-health-makes-play-north-carolina . live .
  10. News: 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 . July 20, 2021 . August 4, 2021 . https://web.archive.org/web/20210804042739/https://www.bizjournals.com/losangeles/news/2019/08/09/this-week-in-l-a-funding-news-snap-ups-debt.html . live .
  11. News: August 7, 2019 . Sidecar Health secures $18m in funding; forays into Texas market . Life Insurance International . Verdict Media . July 20, 2021 . July 27, 2021 . https://web.archive.org/web/20210727185419/https://www.lifeinsuranceinternational.com/news/sidecar-health-secures-18m-in-funding-forays-into-texas-market/ . live .
  12. News: Ellingson . Annlee . July 23, 2020 . Sidecar Health raises $20 million to help users shop for health services . L.A. Biz . American City Business Journals . July 20, 2021 . November 29, 2021 . https://web.archive.org/web/20211129084220/https://www.bizjournals.com/losangeles/news/2020/07/23/sidecar-health-20-million-shop-health-services.html . live .
  13. News: Chen . I-Chun . January 26, 2021 . Sidecar Health raises $125M to scale 'cash price' insurance model . L.A. Biz . American City Business Journals . July 20, 2021 . February 26, 2021 . https://web.archive.org/web/20210226101420/https://www.bizjournals.com/losangeles/news/2021/01/26/sidecar-health-raises-125m-to-scale-cash-price.html . live .
  14. News: March 17, 2021 . Sidecar Brings Modern Indemnity Health Insurance to Utah . ThinkAdvisor . ALM Media Properties . July 20, 2021 . August 4, 2021 . https://web.archive.org/web/20210804185729/https://www.thinkadvisor.com/2021/03/17/sidecar-brings-modern-indemnity-health-insurance-to-utah/ . live .
  15. News: 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 . July 20, 2021 . July 31, 2021 . https://web.archive.org/web/20210731200937/https://techcrunch.com/2021/01/26/la-based-sidecar-healths-low-cost-cash-pay-health-insurance-service-is-now-valued-at-1-billion/ . live .
  16. Web site: Health . Sidecar . 2022-03-01 . Sidecar Health Launches in Illinois, is available to more than half of the U.S. population . 2022-05-17 . GlobeNewswire News Room . en . 2024-07-06 . https://web.archive.org/web/20240706233359/https://www.globenewswire.com/news-release/2022/03/01/2394413/0/en/Sidecar-Health-Launches-in-Illinois-is-available-to-more-than-half-of-the-U-S-population.html . live .
  17. Web site: 2019-12-09 . The Transformative Potential for Price Transparency in Healthcare: Benefits for Consumers and Providers . 2022-05-17 . HMPI . en-US . 2022-03-20 . https://web.archive.org/web/20220320015221/https://hmpi.org/2019/12/09/the-transformative-potential-for-price-transparency-in-healthcare-benefits-for-consumers-and-providers/ . live .
  18. Fixed indemnity health coverage is a problematic form of "junk insurance" . Young . Christine Linke . Hannick . Kathleen . . 2020-08-04 . 2021-09-15 . 2021-09-15 . https://web.archive.org/web/20210915212611/https://www.brookings.edu/blog/usc-brookings-schaeffer-on-health-policy/2020/08/04/fixed-indemnity-health-coverage-is-a-problematic-form-of-junk-insurance/ . live .
  19. Web site: Explore ACA Plans. 2021-12-15. Sidecar Health. en-US. 2021-12-15. https://web.archive.org/web/20211215224621/https://sidecarhealth.com/explore/aca-affordable-care-act/. live.
  20. Implementing Health Reform: Excepted Benefits Final Rule Health Affairs Forefront . 2022-05-17 . www.healthaffairs.org . 2014 . en . 10.1377/forefront.20140929.041684 . 2024-07-06 . https://web.archive.org/web/20240706233400/https://www.healthaffairs.org/content/forefront/implementing-health-reform-excepted-benefits-final-rule . live .

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