Personal Finance Aug 31, 2015 09:50 AM EDT

Two Harvard graduates make it easier to choose the right health plan thru data analysis

By Staff Writer

Two Harvard graduates, through their website, solve the challenge of choosing the right health plan in a labyrinth of health insurance coverage, rules, and companies.

With all the options to choose from, it could get challenging for consumers to choose the health plan tailor-fitted for their needs. But Harvard graduates Grace Gee, 21, and Eugene Wang, 25, found a way to solve this predicament through their startup company, HoneyInsured.

This site uses data analysis to help investor determine which coverage is appropriate for them. These two young entrepreneurs are graduates of Harvard. Gee, who is the CEO of the startup company, said she modelled the service they offer from her experience when shopping for health insurance online.

These days, health insurers are consolidating with most of them claiming that it would benefit the consumers. Health insurance companies claim that these mergers "could lower prices for the consumer by offsetting the bargaining power of health-care providers."

But according to HoneyInsured owners, this claim is less likely to happen. They found out that on the Affordable Care Act's health exchanges, big health insurance companies increased rates by 75% more compared to the smaller firms.

The idea of making it easier for consumers to choose their health plan was when Gee thought about creating their own data analysis to determine the best options. Then, the discussions stretched to "why can't we do this for free and help other people?"

Gee said whenever she looks for health insurance she opens up several tabs from various sites. She said these sites are incentivized to show only the plans that will give them commission. This inspired Gee and Wang to provide a better way to help consumers choose the right health plans.

HoneyInsured is focused on data analysis. It also provides users a shorter set of questions to make it easier and more convenient to apply for insurance on the exchanges. The whole process will take just five minutes.

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