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Sidecar Health Selects Koch Disruptive Technologies to lead $165M Series D Financing

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The only health insurance provider to offer unprecedented price transparency and access to care expands its employer offering into Florida on the heels of strong growth in Ohio and Georgia.

EL SEGUNDO, Calif., June 26, 2024-- Sidecar Health, a transformative health insurance company providing major medical coverage to businesses, announced today the closure of $165 million in Series D financing. The round, which represents the largest private investment in employer health benefits this year, was led by Koch Disruptive Technologies. They were joined by new and existing investors, including GreatPoint Ventures, BOND, Cathay Innovation, Drive Capital, Duke University, Menlo Ventures, and Morpheus.

"U.S. healthcare costs are soaring towards $5 trillion annually, yet our experiences and medical outcomes are not improving," said David Mauney, Managing Director of Koch Disruptive Technologies. "The antiquated U.S. 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. We look forward to working with Sidecar Health to accelerate commercial expansion in 2024 and beyond."

"As the first Sidecar Health institutional investor, we are deeply supportive of how the company has fundamentally redesigned health insurance," said Andrew Perlman, Managing Director at GreatPoint Ventures. "Sidecar Health represents the most important structural innovation in decades in the biggest industry in America. They have developed the only solution we have seen to make care more affordable in an industry responsible for nearly 70% of all U.S. personal bankruptcies. We are also extremely proud to have brought a major state employee pension fund - and one of the largest purchasers of health insurance outside of the federal government - to the table with a significant investment in Sidecar Health through GreatPoint. This demonstrates the wide support of the company's mission and the impact of the Sidecar Health model."

New Free Market Approach Addresses Critical Healthcare Needs

More than 70% of U.S. adults are dissatisfied with the current healthcare system due to the complicated, restricted, and expensive nature of network-based coverage. Additionally, 90% of Americans want transparency and control over their healthcare costs. Sidecar Health addresses these issues with major medical coverage that eliminates the need for prior authorizations, referrals and removes restrictive formularies. Through complete transparency into benefits and local pricing, Sidecar Health empowers consumers and promotes a free-market approach that aligns incentives for providers, patients, and employers. This approach ensures that healthcare is more accessible and affordable for everyone.

"Sidecar Health empowers consumers to make informed decisions about their healthcare spending," said Kendy Troiano, Human Resources Director at Clark Grave Vault, a Sidecar Health customer. "Their flexibility, combined with upfront knowledge of costs and the freedom to choose any licensed provider, allows our employees to choose healthcare providers similarly to how they would decide to purchase any other service or personal item. This transparency and control over costs enable us to maintain affordable coverage while also benefiting from the potential savings realized from informed choices."

Expansion into Florida

Sidecar Health currently offers employer plans in Ohio and Georgia, where the benefits to employers and employees have quickly become evident. While companies frequently face significant annual rate increases, Sidecar Health provides comprehensive major medical insurance that is 20% more affordable than traditional plans while delivering superior coverage.

With the new capital, the company is poised for expansion into Florida, where there are 1.4 million people covered by large employers. Furthermore, Florida's competitive provider market has been faster to adopt consumer-driven healthcare trends like direct pay which aligns seamlessly with the Sidecar Health approach.

Entering the Jumbo Market with Koch Industries

Koch Industries, which has well-known subsidiaries like Georgia Pacific and provides health insurance coverage for over 100,000 Americans, has chosen major medical insurance coverage from Sidecar Health to be available to a segment of its workforce in 2025. Further, Sidecar Health has chosen Koch Industries to be the design partner for insurance coverage specifically tailored to Jumbo employers.

Revolutionizing Healthcare Access

Both simple and revolutionary, the Sidecar Health model enables members to know exactly how much their plan pays prior to getting care. Further, when members choose to see providers who charge less than what the plan pays, Sidecar Health actually shares the savings with their members. Some highlights of this model include:

• No Prior Authorization: By removing complicated pre-approval processes, Sidecar Health ensures members receive timely care without unnecessary delays or second-guessing by insurance on medical decisions.
• Freedom from Networks: Members can access healthcare benefits from any licensed medical provider, eliminating traditional network restrictions.
• Direct Pay: The Sidecar Health instant, direct-pay model means members pay for care at the time of service with their VISA benefit card, facilitating immediate payment to providers.
• Industry-Leading Protections: Sidecar Health provides extra peace of mind with a suite of financial protections that go beyond any offered by other major insurance carriers and that safeguard Sidecar Health members from unanticipated balance billing. Plus, members are always able to access any care without having to pay more than their deductible.

"With half of all Americans receiving insurance through their employers, we have prioritized expanding our employer offerings," said Patrick Quigley, Co-Founder and CEO at Sidecar Health. "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. 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."

About Sidecar Health

Sidecar Health insurance plans deliver industry leading major medical coverage for employers. Our health insurance is based on an intuitive, tech-forward approach that removes obstacles to care and empowers our members with the information they need to make smart care decisions. Unlike traditional insurance, our members are not limited by provider networks, prior-authorizations, or Rx formularies. Sidecar Health plans also never have coinsurance or copays. We do all this while saving employers and employees 20% on healthcare costs.
More at sidecarhealth.com.

Contact:
Media Contact:
Ethan Hertzberg
Sidecar Health
ehertzberg@sidecarhealth.com

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