Sidecar Health is bringing its fully insured health insurance product to Texas, according to a Jan. 22 news release.
Sidecar said Texas is one of the largest employer markets in the U.S. According to recent survey data, about one-third of the state’s employers said health benefits are their business’s fastest-growing expense. On the flip side, 76% of U.S. employees said they wanted their employer to pivot its health insurance approach.
“Texas regulators and lawmakers have demonstrated a pragmatic approach to health insurance that builds on Sidecar Health’s expansion across multiple employer markets and reflects growing momentum among employers seeking alternatives to legacy carrier designs that depend on networks, utilization management and complex cost-sharing to manage rising costs,” the release said.
The startup health insurer closed a $165 million funding round in 2024 and has been expanding across the country in recent years.
Sidecar’s business model relies on demonstrating guaranteed costs before care and eliminating networks, referrals and prior authorizations. Covered services have a maximum benefit amount that the plan will pay, leading to mutual savings if care is less expensive. Almost 80% of the company’s claims do not surpass that amount, the release said.
