US health insurance technology company Sidecar Health has secured $165m in a Series D funding round.
The round was led by Koch Disruptive Technologies, with participation from both new and existing investors.
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These include BOND, Cathay Innovation, Drive Capital, Duke University, GreatPoint Ventures, Menlo Ventures and Morpheus.
Established in 2018, Sidecar Health provides major medical coverage designed to simplify and reduce the costs associated with network-based coverage in the US healthcare system.
Sidecar Health’s model is characterised by its lack of prior authorisations and network restrictions, claiming to offer members transparency and control over their healthcare costs.
Its approach is designed to allow members to access healthcare from any licensed provider and pay for services directly with a VISA benefit card.
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By GlobalDataThis direct-pay model aims to eliminate delays in care and provide financial protections to members against unexpected billing.
Currently, the company offers employer plans in Ohio and Georgia, where it claims to provide coverage that is 20% more affordable than traditional plans.
With the latest infusion, Sidecar Health aims to expand into Florida, where approximately 1.4 million people are covered by large employers.
Koch Industries has selected Sidecar Health for a segment of its workforce. The health insurer has also joined forces with Koch Industries for insurance solutions aimed at jumbo employers.
Sidecar Health co-founder and CEO Patrick Quigley said: “With half of all Americans receiving insurance through their employers, we have prioritised expanding our employer offerings. This strategy allows us to improve care for the largest number of people in the quickest way possible, maximising our ability to fulfill our mission.
“With this new capital, we will extend our reach into new regions and markets while further reshaping the healthcare landscape.”
Koch Disruptive Technologies managing director David Mauney said: “US healthcare costs are soaring towards $5trn annually, yet our experiences and medical outcomes are not improving. The antiquated US health insurance system is one of the main culprits in creating bottlenecks and hurdles to quality care.
“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, in control of their care decisions with never-before-seen tools and transparency paired with fewer restrictions.”
The company’s valuation reached $1bn following a $125m Series C funding round in January 2021.
