Sidecar Health Expands Into Texas to Meet Rising Employer Demand for a Better Alternative to Legacy Health Plans

Sidecar Health is expanding its fully insured health insurance offering into Texas to meet growing demand from employers and employees seeking a modern alternative to legacy health plans. This expansion enables Sidecar Health to offer its consumer-driven model to Texas employers with over 50 employees. 

Texas is home to one of the largest employer markets in the country, with more than 3 million registered business entities and a workforce of nearly 16 million people. Recent data underscores the urgency. Eighty-five percent of Texas employers believe healthcare costs are increasing at an unsustainable rate, and 34% say healthcare benefits have become the fastest-growing expense in their business. More than half (51%) report that rising healthcare costs have directly interfered with their ability to raise salaries or hire new employees. Employees feel the strain as well — 76% of Americans say they’d like their employer take a new approach to health insurance, according to a 2024 Sidecar Health survey of consumers on traditional network-based employer-sponsored health insurance.

Sidecar Health’s model addresses these pressures by replacing restrictive plan designs with clear, guaranteed costs before care, along with no networks, no referrals, and no prior authorization requirements. By showing people what care costs before they get it, the model encourages members to treat healthcare spending with the same consideration they apply to other major household expenses. Members can see any licensed provider and know upfront what their plan will pay for care. For every covered service, the plan pays up to a maximum allowable amount (called a benefit amount) based on typical local prices. When members choose lower-cost care, they keep half the savings. Or they pay the difference if they choose care above the Benefit Amount. Today, nearly 80% of claims are at or below the benefit amount.

“Employers and employees alike are asking for something fundamentally better,” said Patrick Quigley, CEO and co-founder of Sidecar Health. “When people treat healthcare dollars like their own — everyone wins. Employees get better access and faster care. Employers save money. This expansion allows us to meet the growing need for a better solution in one of the largest employer markets in the country.”

Sidecar Health aligns incentives across employers, employees, and providers by removing the insurer from day-to-day care decisions while maintaining major medical coverage and consumer protections. Members pay providers directly using a Sidecar Health–provided Visa card and, in 2025, fewer than 1% of Sidecar Health claims were clinically denied — a fraction of typical industry rates.

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.