Insurance startup backed by millions
An insurance startup founded by the former CEO of United Healthcare has secured $46.5 million in funding with a plan to raise $81.5 million in venture capital.
Bright Health has been established by Bob Sheehy along with former CEO and founder of Redbrick Health Kyle Rolfing and Tom Valdivia, executive chairman and former CEO of Lumināt.
Fortune.com reports that the new venture, based in Minneapolis, promises to provide a “consumer-focused health plan” but there are few details available beyond that.
The firm’s website brighthealthplan.com says that the company aims to offer coverage from the 2017 plan year. It is also heavily focused on technology to offer the customer experience.
Canadian insurers launches usage-based auto product
Allstate Insurance Company of Canada has announced the launch of a new usage-based auto insurance product; the first of its kind in Alberta. Drivewise is available for private passenger vehicles and uses a small telematics device fitted in the vehicle.
Once drivers are enrolled in the program and the device is installed, their driving will be monitored for a six-month period, after which the data collected will determine the earned discount (up to 30 per cent) that will be applied at renewal.
The Superintendent of Insurance approved the program with effect from April 1, 2016.
Many Latino, African Americans unaware of insurance options
Many uninsured Latinos and African Americans are unaware of their options when it comes to health insurance. A study published in the International Journal for Equity in Health found that more than half of parents from those ethnic groups did not realize that they could get free or low-cost health insurance.
The study revealed reasons why parents have uninsured children: lapsed coverage (30 per cent); no reply to application (9 per cent); missing paperwork (8 per cent).
Through a lack of knowledge of programs such as CHIP and Medicaid, many families are paying for healthcare without assistance, often from low incomes.
