|1||A fundamental redesign of the health insurance model|
|2||No deductibles / co-pay / co-insurance. Absolutely no financial liability for members apart from premiums|
|3||Payment to providers at time of service|
|4||Very Competitive pricing|
|6||Socially responsible model|
|7||Allows members and providers full control of healthcare decisions|
|8||Will provide full support to patients requiring inpatient hospital care.|
Ever feel as though your deductible is so big you might as well not even have health insurance? Or spend hours on the phone arguing with your insurance company about why they didn’t pay? For most Americans, the answer is “yes.” At Delsure, we’re a grassroots movement created for the people, by the people to make healthcare affordable and accessible through better insurance.
Today, health insurance is obtrusive to a level of almost obscenity. Insurers have the power to reject treatment protocols, overrule doctors, and limit patients to a sparse selection of medical facilities.The consumer is totally in the blind, and the medical professional has lost control.
At Delsure, we want to give you back control.
Insurance is a simple idea centered around the calculation of risk, as identified by analyzing historical experience data and applying it to a specific future period. By using this data through the science of statistics, insurance companies can very accurately predict use of healthcare services.
The only operating function of an insurance company is to pay claims on behalf of their members. Today, this costs the legacy insurers huge amounts of money because of all the variables in the policies of their members and the real-time updating of these multiple variables. This need not be so. By utilizing credit card payments of claims through members and removing all variables, we can reduce the cost to pennies on each claim.
The result will be a simple payment of claims method that makes the current insurance claim payment model obsolete. In 80% of cases, practitioners will be paid 100% of their claim at time of service and the member will be free of any other financial claims.
We’re giving members the peace of mind of knowing that their monthly premium is ALL they have to pay. That means:
Ultimately, we’re helping to ensure that families can actually afford to USE their health insurance and not go into serious debt in the event of a medical emergency. To further empower our consumers, we’ll also be operating on an open network model--this means members will be able to go to the provider of their choice rather than being limited. Last but far from least, by paying 80% of claims at the time of service we’re giving healthcare providers full control of treatment protocol decisions.
At the end of the day, we’re putting the power over important health-related decisions back EXACTLY where it belongs: In YOUR hands, and the hands of YOUR chosen medical professional.
Once licensed by the Department of Insurance in Delaware, we will be the FIRST startup health insurer in over 50 years and uniquely positioned to disrupt the health insurance sector. Based on our analysis of various factors in the healthcare and insurance sectors and employer groups in Delaware, we project initial year-over-year revenues of:
Over 150 million people are covered by private insurance, and the top 6 health insurers generate over $500 billion in combined revenues. We are confident that between our reduced cost model and improved consumer experience we will be able to capture a significant segment of this market.
Since first incorporating in June 2017, we have raised $1,100,000 from commited investors without incurring any debt. Within the next 5 years, we aim to overtake the Delaware market and ultimately expand nationwide.
For more information on our infrastructure and models, please be sure to take a look at our pitch deck and stop by our Ask a Question section.
It’s time to disrupt the health insurance industry and take back control of your medical decisions! Together, we can make the change.
Delsure Health Insurance has financial statements ending December 31 2018. Our cash in hand is $300,000, as of October 2019. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $25,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Please note that Delsure is in the process of obtaining the Certificate of Authority to transact health insurance in Delaware as of this listing.
We are an health insurance startup ramping up to provide service in Delaware, in the process of obtaining our Certificate of Authority in the state to be able to sell health insurance. If and when the Certificate of Authority is obtained, Delsure will be the first health insurance start up in decades.
We want to fix all that is wrong with the current broken model of health insurance, first in Delaware, to be followed by neighboring states, and nationally eventually.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Delsure Health Insurance Inc. was incorporated in the State of Delaware in June 2017.
We are building a company that has:
Historical Results of Operations
Our company was organized in June 2017 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $520,000 in equity, $593,450 in preferred convertible shares and $50,000 of bank credit.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 6 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Delsure Health Insurance Inc. cash in hand is $300,000, as of October 2019. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $25,000/month, for an average burn rate of $25,000 per month. Our intent is to be profitable in 24 months.
We're pre-revenue until we get our license and rates approved. We expected that to happen last year, but because we have a new model it's taking longer than expected by the Department of Insurance. We hope to be approved in early 2020. At the end of our first year of operation, assuming that we raise at least $450k, we hope to have 1.5M in revenues, and about 2M in expenses. We hope to become profitable two years after beginning to generate revenue.
We plan to raise capital from traditional VCs in the future so that we can grow faster. We have a highly scalable model, and hope to be in 5 - 6 states within a year of starting to generate revenues.
Highly concentrated and regulated market. Very limited ability to increase prices. Competitors are very large and can create problems. Untested model. Penetrating healthcare provider networks may be difficult. There is potential for hostility from the regulators, which we are witnessing already and which has and can lead to further unpredictable delays in obtaining license and getting the rates approved, without which we cannot sell insurance.
Will need to work hard to convince groups to change to us. Health insurance is a sensitive topic and experience can be considered important.
Currently unstable regulations which can change. The Affordable Care Act may be repealed and replaced by other regulations including some iteration of Medicare for All which may have a fundamental effect on our business.
Healthcare utilization is subject to variances, some of which may be very expensive. The possibility of exceptions to the norms exist. There may also be variances to statistical predictions which can increase costs. Outlier health events can be prohibitively expensive.
Adverse tax treatment of the cost of health insurance to companies can make insurance more expensive and less accessible.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
We may need to raise additional funds before generating revenues which can lead to dilution.
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