Health insurance startup Sidecar Health raises $125 million
Sidecar Health closed a $125 million in its Series C funding round at a valuation of $1 billion, bringing its total funding to over $175 million. The round was led by Drive Capital and joined by new investors BOND, Tiger Global and Menlo Ventures along with existing investors Cathay Innovation and GreatPoint Ventures.
Founded in 2018, the company utilizes a “cash price” model that enables members to pay lower “self-pay” or “cash” prices to their healthcare providers rather than the higher rates negotiated by insurance companies.
In addition to offering members lower monthly premiums and the option to see any doctor, the company’s app and payment technology allow members to see their benefit amounts for more than 170,000 medical services and prescription drugs before they access care.
Members can also view what providers have charged other Sidecar Health members for services. And, because members can pay doctors at the time of care using a Sidecar Health Visa card that pulls payment directly from their plan’s claims account, members can take advantage of doctors’ discounted “self-pay” or “cash” rates, saving them 40% or more on healthcare costs, without network restraints or surprise bills.
“The plans we designed give Sidecar Health members two things: the money they need to purchase care and the information to make decisions that are right for them. By doing so, we are turning patients into purchasers of healthcare. This latest funding accelerates us on our mission to make healthcare more affordable and accessible for all Americans.” – Sidecar Health co-founder and CEO Patrick Quigley.
“Sidecar Health is the biggest idea I have seen in almost two decades of investing in healthcare . We are strong believers in their product which brings unprecedented value, simplicity, transparency and choice to consumers.” – General Partner at BOND, Noah Knauf.
The company is currently operating in 16 states and will continue its geographic expansion in 2021.