Entrepreneurs have seen countless opportunities to introduce more consumer-friendly technology to a stodgy industry.
Oscar, launched in 2014, billed itself as the health care provider for the next generation — one with all the perks of a tech company. Built on the back of Obamacare, it sells insurance directly to consumers.
Collective Health also launched in 2014, but it focuses on helping employers navigate the health care system.
These two distinct paths could mean very different outcomes under the new administration.
Collective Health anticipates it will be unaffected by any health care policy changes.
“We’re largely isolated from [the Affordable Care Act],” cofounder Rajaie Batniji told CNNTech. “Our focus has been on working with employers rather than individuals. That’s a market that was there before the ACA and will be there after.”
In an announcement this week, Collective Health said it has 15 companies using its platform, including Palantir, eBay (EBAY), Red Bull and Zendesk. Their combined 70,000 employees use Collective Health’s platform for all their health care and benefits information. And the market for potential clients is vast.
Collective Health targets companies that self-fund employees’ insurance, which means employers take on more risk but also have more control over policies. According to the latest Kaiser/HRET Employer Health Benefits Survey, 61% of covered workers are on insurance plans that are at least partially self-funded by their employers. Traditionally, larger companies with 2,000 or more employees tend to self-fund insurance. But Collective Health wants to get smaller startups to go that route as well.
The idea is that for around $30 to $50 per employee per month, Collective Health can help businesses manage and optimize their benefits. Its latest product launch, CareX, is a play to make those savings even greater.
Date: March 04, 2017