Healthcare startup Decent raises $10 million
Austin-based health insurance startup Decent announced a $10 million Series A funding round led by QED Investors. The news follows an $8 million Seed round announced in 2018 when the company launched.
Currently a team of 38 people led by co-founder and CEO Nick Soman, the company offers health insurance plans to self-employed workers and is now expanding its offering to reach individuals as well as small businesses. It primarily targets companies in the technology sector promising comprehensive health plans for an average of 40% less than currently comparable options.
“The COVID-19 pandemic has made quality health insurance more important than ever, while also compressing our economy and forcing small businesses to cut costs. This is why we founded Decent, to make affordable health insurance within reach for groups often left with inadequate or expensive options.” – Decent’s CEO and co-founder, Nick Soman.
Decent works with independent Direct Primary Care doctors and partners such as AXA, HCA Healthcare, Medlion, Hint, and Costco Health Solutions.
It also uses “self-insurance” to help small businesses and entrepreneurs band together to reduce their medical costs. Self-insured health insurance means that the employer is using their own money to cover their employees’ claims. Most self-insured employers contract with an insurance company or independent third party administrator for plan administration, but the actual claims costs are covered by the employer’s funds.
“Big companies shouldn’t be the only ones with great benefits. We’re helping level the playing field for small businesses when it comes to purchasing healthcare. The cost savings we offer can make the difference between a small business offering coverage or leaving their employees with no health insurance at all.” – Soman.