Sidecar Health, a health insurtech, has raised $165 mn in a Series D funding round led by Koch Disruptive Technologies, supported by GreatPoint Ventures, BOND, Cathay Innovation, Drive Capital, Duke University, Menlo Ventures, and Morpheus.
Sidecar Health, founded in 2018, aiming to change the insurance industry by providing transparent, accessible, and affordable healthcare options.
Sequred funding marking the largest private investment in employer health benefits this year.
This funding will help Sidecar Health expand its health insurance approach, offering members more transparency and control over healthcare expenses.
US healthcare costs are nearing $5 trln annually, yet experiences and outcomes aren’t improving. The outdated US health insurance system creates hurdles to quality care.
Sidecar Health is transforming the system with a model that empowers consumers with tools and transparency, and fewer restrictions. We aim to accelerate their commercial expansion in 2024 and beyond
David Mauney, Managing Director of Koch Disruptive Technologies
“As Sidecar Health’s first institutional investor, we support their redesign of health insurance”, Andrew Perlman, Managing Director at GreatPoint Ventures, said.
Sidecar Health’s model allows members to choose any licensed healthcare provider without network restrictions or referral requirements.
Members use a Sidecar Health VISA benefit card to pay for medical services directly at the point of care. This system ensures transparency, as members know the exact benefit amount their plan pays for any procedure, test, or drug beforehand.
“They offer a structural innovation in the largest US industry, providing a solution to make care more affordable. A major state employee pension fund’s investment through GreatPoint shows broad support for Sidecar Health’s mission and model.”
Sidecar Health empowers consumers to make informed healthcare spending decisions. Their flexibility, cost transparency, and freedom to choose any licensed provider allow employees to select healthcare providers as they would any other service.
This control over costs helps maintain affordable coverage while benefiting from potential savings through informed choices.
The insurtech offers plans designed to be straightforward and understandable, with no surprise bills. By paying doctors directly and enabling patients to compare prices between providers, Sidecar Health aims to save members 40% compared to traditional insurance plans. The mission is to make healthcare more affordable while maintaining high-quality care.
