This Wharton graduate’s health finance startup offers instant medical loans with no interest
Good health care is an expensive endeavor. Despite the large number of health insurance companies less than five percent of the Indian population have access to private insurance. And almost two-thirds of those who do are are underinsured.
Most healthcare spending comes from personal savings or borrowed from informal sources of credit such as friends and family. As a result, India ranks a miserable 184th place out of 191 nations in Health expenditure as a percentage of GDP, according to WHO.
In addition, access to health insurance is often through the associated intensive documentation and paperwork at the application level. Then there are EMIs to worry about. And even after all of that Only a handful of interventions and treatments are covered by private insurerswhile the rest is unattended.
CareCover, that’s because of the Healthcare and finance interface, tries to fill in those gaping gaps.
the Noida-based startup was was launched earlier this year and is the brainchild of Nivesh Khandelwalwho previously set up LetsMD (an online platform for patients to find and compare prices of operations, the quality of hospitals and doctors, etc.).
Nivesh Khandelwal, Founder & CEO, CareCover
What is CareCover and what it solves
Both LetsMD and CareCover are operated by Medbay India (the parent company) supported by early stage investors, including WaterBridge Ventures, SRI Capital and Orios Venture Partner.
Founder CEO Nivesh (Who is a UCLA and Wharton graduate?) told Your story:
“CareCover is a Fintech in healthcare Product. We offer pre-approved credit cards to patients who provide them with instant cash for medical emergencies and even pre-existing conditions which are usually not covered by private health insurance ”.
the medical OPEX cards which are made available by the startup, cover the health expenses of the patients. These credit cards are provided on Zero percent interest rate EMIs, which can be deleted within a period of 12 months.
The average amount that can be borrowed on the card ranges from Rs 50,000 to Rs 5 lakh.
CareCover OPEX cards are valid for four members in the family (the cardholder and three other family members) and give them access to 2,000 partner clinics. These include India’s leading private hospital chains, including Fortis, Jaypee, Max, Medanta, Etc.
“By the end of 2020 we will be active in 5,000 hospitals in India’s top 20 cities,” reveals Nivesh.
What CareCover credit cards offer
The startup attaches great importance to speed. Patients can redeem their credit card at a partner hospital in less than an hour, because “every second counts”.
For an employed customer in a metropolis, the time window is even shorter at just 15 minutes.
The CEO explains
“We want to make sure that our customers have access to quality healthcare without having to dig into your precious savings. The CareCover card provides faster access to financial aid, eliminating the hassle of looking for funds that can make a difference. There are also no exclusions in our policy. We take care of all procedures, including those with previous illnesses. “
CareCover card holders can also attractive discounts and offers in selected pharmacies and fitness centers.
There are even those Possibility to open one Health savings account. This not only enables customers to save money, but also earns interest income.
CareCover claims that it offers higher interest rates than those offered by banks for fixed-term deposits.
Operations and growth plans
The startup says it has 10,000 credit cards sold in two months, and growing by 35 to 40 percent quarter on quarter. Most of his clients are between 35 and 45 years old and almost 15 percent are female borrowers.
the average loan amount is on CareCover cards Rs 1.5 lakh, that’s more than 92 percent of health insurance claims in the country.
Says the founder: “The size of an average medical claim in India is Rs 1 lakh or less. Most of the population is underinsured. We try it Reduction of insurance costs by 60-70 percent, and offer patients one better but cheaper insurance coverage“.
CareCover receives a commission from partner hospitals per patient. In the future is planned offer tailor-made data intelligence solutions to these hospitals for a fixed fee. “We have already built almost 800 tailor-made products,” says the founder.
The goal of the startup is to sell 150,000 credit cards in 12 months, and come to a million Cardholder for the next three years.
This is certainly an ambitious goal, but given the urgent need for affordable health care in India, it may not be insurmountable.
“Even if Ayushman Bharat Yojana becomes a reality, people’s spending on health care will always be there.”
“And unlike health insurance, which has many exclusions, a health savings plan can be used for all treatments. CareCover does not want to replace insurance, but rather is one Add-on to offer patients comprehensive health protection, “he adds.
Funding and industry landscape
CareCover has booted so far but its parent company (Medbay) is looking for it Complete a $ 5 million Series A Round shortly.
It has also started adding higher tech skills on his platform, which would allow him to collect more data and tailor loans and services to his customers.
“We have already six out of eight things are automated required to process a credit card. Authentication and verification are completely paperless and smooth. The challenge now is to quickly deliver a loan.”
CareCover counts traditional insurers like Bajaj FinServ and startups like AffordPlan, MoneyTap and LoanTap among its competitors.
However, the founder believes his unique focus is on instant medical loans at low cost will highlight it.
Nivesh says goodbye with the words:
“We are a first class product and we get first class borrowers because we offer them personalized POS health finance“.
(Edited by Megha Reddy)