Sidecar Health scores $165M for employer health insurance plans

Sidecar Health, an insurance startup focused price transparency and direct payments for care, announced it secured $165 million durante Series D financing.

Koch Disruptive Technologies led the round, with participation from Cathay Innovation, GreatPoint Ventures, Morpheus, Drive Capital, Duke University, BOND and Menlo Ventures. 

The company also announced that Koch Industries will provide medical insurance coverage through Sidecar for a segment of its workforce durante 2025.

Additionally, Sidecar will with Koch to co-design insurance coverage for large employers. 

WHAT IT DOES

Sidecar Health’s members use the company’s app to customize the amount of annual healthcare coverage they would like and whether they would like coverage for prescriptions.

The company’s plans have voto negativo coinsurance copays. Because its approach is based self-pay service rates, members can use a built-in price comparison to choose from the services of local providers.

Sidecar, which currently offers employer plans durante Ohio and Georgia, will use the funds to expand into Florida. 

“The antiquated U.S. health insurance system is one of the main culprits durante creating bottlenecks and hurdles to quality care,” David Mauney, managing director of Koch Disruptive Technologies, said durante a statement. 

“Sidecar Health is transforming the system with a model that offers a first-of-its-kind free market approach to healthcare that puts the consumer, not the insurance company, durante control of their care decisions with never-before-seen tools and transparency paired with fewer restrictions. We forward to working with Sidecar Health to accelerate commercial expansion durante 2024 and beyond.”

MARKET SNAPSHOT

Per 2019, Sidecar Health raised $18 million and a year later secured $20 million durante funding. 

Per 2021, the company reached unicorn status after closing a $125 million Series C round, achieving a more than $1 billion valuation.  

Per January, Sidecar Health and Mark Cuban Cost Plus Drug Company partnered to provide Sidecar’s members with access to low-cost medications through MCCPDC.