Sidecar Health, a US-based health insurance company, has raised $18m in a new funding round led by venture capital firm GreatPoint Ventures and Morpheus Ventures.
Now the advisory board of Sidecar Health includes health care entrepreneurs Ted Meisel, co-founder of AVIA, and Anita Pramoda, a board director for the Federal Reserve Bank of San Francisco (Los Angeles).
GreatPoint Ventures managing partner Andrew Perlman said: “Sidecar Health removes the administrative costs from the health care process and provides true price transparency that consumers can actually use, and that’s something long overdue in this industry.”
Joseph Miller of Morpheus Ventures said: “This product 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.”
Concurrently, Sidecar Health has launched its services in Texas market.
Sidecar Health allows its customers to customise their health insurance plan, consult any doctor as per their wish and offers complete transparency into their health costs.
To ensure transparency, Sidecar Health provides its members with a payment card which they can use to pay for their care, thereby allowing them to take advantage of discounts for paying upfront.
Additionally, members know how much will be paid by their plan for any health service due to the coverage offered by the plan at fixed, published amounts.
Using the Sidecar Health app, members can know the fees being charged by the health care providers in their area.
Sidecar Health CEO Patrick Quigley said: “Providing people transparency into costs and coverage and enabling them to choose their own providers puts the consumer in control, which is critical to making health care and health insurance affordable. We believe that is the way health insurance should be.”
Launch of Sidecar Health in Texas comes at a time when health care costs continue to skyrocket. Nearly five million people are uninsured in Texas alone, according to the Centers for Medicare and Medicaid Services.
“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 added.
After Texas, Sidecar Health is planning to gradually expand into various states across the US over the next 12 months.