Secret sauce part II: How Decent's economies of scale benefits your bank account

Health insurance 101

Health insurance does not have the best reputation. It’s become increasingly clear over the last decade that people are unsatisfied with their health plan options, especially when it comes to small businesses.

In addition to facing a lack of good options, people and businesses must struggle with rising rates and exorbitant price tags on health insurance. We’re here to change all that.

Banding together to support small businesses

The rising costs we mentioned lead many small businesses to forego health insurance altogether. It’s not an easy decision to make, but many small businesses simply cannot afford the cost burden of offering health insurance to employees. This reality puts these businesses in a tough spot at a time when health care coverage is more important than ever.

Large employers have long been able to take advantage of their size to negotiate and obtain affordable health care options. In fact, they’ve been huge drivers in how the health insurance industry works, enabling them to customize plans and take care of their employees in a very affordable way. Decent has expanded access to that model so that small businesses can access the same benefits that were previously only available to companies with the scale to self-insure.

The result? We offer Affordable Care Act (ACA)-compliant plans that are built around convenient, free primary care and priced at up to 40% less than market rate.

How does it work?

Decent enables small businesses to band together to purchase healthcare. How? We partnered with the Texas Freelancer Association (TFA), a Multiple Employer Welfare Arrangement (MEWA), to offer small businesses access to the same type of self-insured plans that have previously only been available to some of the largest companies in America.

Our goal is to “even the playing field” for small businesses so that they can cash in on the same benefits that large businesses have been enjoying for years. Not only does this mean that small business employees can obtain affordable, comprehensive health insurance, but it also means that small businesses can now use these benefits to compete for talent, take advantage of tax incentives, and more easily grow.

We’re grouping together small businesses of similar categories, starting with technology. These groupings give us the same economies of scale and bargaining power as larger organizations. If you are a technology company or even a company that services a technology company (a marketing firm that helps technology companies, a commercial real estate broker with technology clients, a recruiting firm for technology-related roles, or even a lawyer that assists technology companies), you now have the opportunity to purchase health plans up to 40 percent lower than currently available options. We’ll continue to expand to other categories over time, allowing small businesses across the board to benefit from these unique cost savings.

We’re stepping on the trend of rapidly-escalating healthcare costs that have hamstrung small business owners for years. We live in a time with an unpredictable economy, so we’re removing the added stress for small businesses who wonder if they can afford to offer health insurance. We believe small business owners shouldn’t have to choose between keeping employees or keeping health benefits. We know just how important health care coverage is. Join us and band together to purchase healthcare with the same advantages that large corporations have.

Is Decent here for the long run?

Some of you might be wondering if this is too good to be true. We get it. In these unpredictable times, it’s easy to wonder if (and how) companies like us will be around for the long haul. We can assure you that we will. We just raised $10 million (series A) and are approved to serve small businesses.

To get to this place, we underwent a year-long trial period where we proved that our model was financially sound, whereby we were able to garner support from the Austin community. After that year, our members had an average Net Promoter Score (a way companies evaluate how much their customers enjoy their service) of 73 in an industry that averages 14. Here’s the thing: we’re just getting started.

We’re currently in the process of expanding Texas-wide and now serve Austin, Houston, Dallas, San Antonio, West Texas. If you live in Texas, chances are good we can help you. We're not just gearing up to be here next year but making plans to deliver affordable, comprehensive health insurance for the next several decades.

We offer a couple of different plans for you to choose from:

  • Zero Plans: Our Zero plans all come with a $0 medical deductible. Perfect for anyone who loves copays!
  • Saver Plans: Our Saver plans are all HSA compatible. Great for anyone with complex health or financial needs.

If you’re ready to see how economies of scale can work for your small business — and your employees — get your free quote today.

Welcome to Decent: a new kind of health plan.

Join our monthly newsletter to stay in the know!