In a major development for the U.S. healthcare industry, Sidecar Health, a startup that offers price transparency and direct payments for care, has announced it has raised $165 million in Series D financing. This funding round was led by Koch Disruptive Technologies, with participation from Cathay Innovation, GreatPoint Ventures, Morpheus, Drive Capital, Duke University, BOND, and Menlo Ventures.
As part of this announcement, Koch Industries will provide medical insurance coverage to a segment of its workforce through Sidecar in 2025. Additionally, the two companies will collaborate to co-design insurance coverage for large employers.
Sidecar Health offers its members the ability to customize their annual healthcare coverage and opt for prescription coverage through their app. Plans are available with no coinsurance or copays and feature built-in price comparison tools that allow members to compare services from local providers based on self-pay service rates. 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 and praised 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
