Sidecar Health raises $165M to fund employer health insurance plans

Sidecar Health, a startup focused on price transparency and direct payments for care, has announced that it has closed $165 million in 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. In addition, Koch Industries will provide medical insurance coverage through Sidecar for a segment of its workforce in 2025, and will also collaborate with Sidecar to co-design insurance coverage for large employers.

Sidecar Health offers members the ability to customize their annual healthcare coverage and opt for prescription coverage through their app, with plans that have no coinsurance or copays. By basing their approach on self-pay service rates, members can use a built-in price comparison tool to select services from local providers. Currently, Sidecar offers employer plans in Ohio and Georgia, but plans to use the new funding to expand into Florida.

David Mauney, managing director of Koch Disruptive Technologies, emphasized the need for transformation in the U.S. health insurance system, praising Sidecar Health’s model for providing consumers with control over their care decisions and offering unprecedented transparency and tools. He expressed excitement about working with Sidecar Health to accelerate commercial expansion in 2024 and beyond.

In previous funding rounds, Sidecar Health raised $18 million in 2019 and secured $20 million in 2020 before achieving unicorn status in 2021 with a $125 million Series C round. In January, they partnered with Mark Cuban Cost Plus Drug Company to offer members access to low-cost medications through MCCPDC.