What You Should Know:
– Sidecar Health, a health insurance provider for businesses raises $165M in a Series D funding round led by Koch Disruptive Technologies with participation from new and existing investors such as GreatPoint Ventures, BOND, Cathay Innovation, Drive Capital, Duke University, Menlo Ventures, and Morpheus.
– Sidecar Health’s $165 million funding round and strategic partnership with Koch Industries position them as a major disruptor in the employer-sponsored health insurance market.
A Free-Market Approach to Address Frustrations
Sidecar Health is tackling a critical need – dissatisfaction with the current employer-sponsored healthcare system. Over 70% of Americans are fed up with the complexity, restrictions, and high costs associated with traditional network-based plans. Furthermore, 90% of Americans crave transparency and control over their healthcare spending.
Sidecar Health directly addresses these concerns by offering major medical coverage that eliminates prior authorizations, referrals, and restrictive drug formularies. Through complete transparency into benefits and local pricing, Sidecar Health empowers consumers and fosters a free-market approach that aligns incentives for patients, providers, and employers. This innovative model promises to make healthcare more accessible and affordable for everyone.
Florida Expansion on the Horizon
Sidecar Health is experiencing rapid success with its current employer plans in Ohio and Georgia. The company boasts a 20% cost savings compared to traditional plans while delivering superior coverage. With this new funding, Sidecar Health is setting its sights on Florida, a state with a vibrant employer market and over 1.4 million people covered by large employer health plans. Florida’s embrace of consumer-driven healthcare trends, like direct pay, aligns perfectly with Sidecar Health’s philosophy.
A Jumbo Partnership with Koch Industries
The announcement includes a significant partnership with Koch Industries, a giant with subsidiaries like Georgia Pacific and a healthcare provider for over 100,000 employees. Koch Industries has chosen Sidecar Health’s major medical insurance to be offered to a segment of their workforce in 2025. Additionally, Sidecar Health will collaborate with Koch Industries to design specific insurance coverage for “jumbo” employers – those with very large workforces.
Revolutionizing Healthcare Access: Transparency, Choice, and Savings
Sidecar Health’s revolutionary model offers a breath of fresh air for employers and employees alike. Here are some key features:
- No More Prior Authorizations: Sidecar Health eliminates the complexities of pre-approvals, ensuring timely care without unnecessary delays or insurance interference in medical decisions.
- Freedom of Choice: Members can access any licensed healthcare provider, unshackled by traditional network restrictions.
- Direct Pay with Savings Sharing: Sidecar Health’s direct-pay model allows members to use a special VISA benefit card to pay for services at the time of care. When members choose providers with lower charges, Sidecar Health shares the savings with them.
- Industry-Leading Protections: Sidecar Health goes beyond traditional insurance plans by offering robust financial safeguards that shield members from surprise balance billing. Additionally, members always have access to necessary care without exceeding their deductible.
“With half of all Americans receiving insurance through their employers, we have prioritized expanding our employer offerings. This strategy allows us to improve care for the largest number of people in the quickest way possible, maximizing our ability to fulfill our mission,” said Patrick Quigley, Co-Founder and CEO at Sidecar Health. “With this new capital, we will extend our reach into new regions and markets while further reshaping the healthcare landscape. The diversity of investors in this round reflects a wide endorsement of the Sidecar Health mission to overhaul the flawed and unsustainable cost drivers of the U.S. healthcare system with our unique consumer-centric insurance model.”
