CrowdHealth, a platform that offers an alternative to traditional insurance by crowd funding medical expenses, is now integrating Lightning payments with Breez’s Lightning SDK. The United States spends more than twice the average amount on healthcare compared to other developed nations with similar economic situations. Medical costs are a leading cause of bankruptcy in the US, highlighting the issues within the medical system.
CrowdHealth’s model provides an alternative to conventional insurance at a lower price point. For a monthly membership fee of $50, significantly lower than most insurance plans, CrowdHealth negotiates medical bills, assists in locating care providers and managing bills, offers discounted prescriptions, along with access to their member crowdfunding service, and more.
The core feature of the platform is the crowdfunding aspect. Instead of users contributing to an insurance fund, they pay their monthly fee to CrowdHealth and rely on voluntary crowdfunding from other members to meet the funding requirements to pay for medical expenses. This model has been successful with its current 5000 member user base.
Prior to integrating with Breez, the company operated using traditional fiat payment methods. However, this introduced two main overheads that were not addressable on these rails.
Firstly, the payment fees. Bank wire transfers could incur high fees, eating into the donated funds. Lightning drastically reduces transfer fees to mere pennies, regardless of the amount being transferred.
Secondly, the time required for payment settlement. Bank transfers can take days or even weeks to settle, potentially causing harm to members in urgent need of medical care. Lightning settles payments with complete finality in seconds, addressing this issue.
By integrating with Breez’s Lightning SDK, CrowdHealth can streamline its costs and potentially improve the scalability of its members crowdfunding for medical expenses.
