Sidecar Health, a California-based insurance startup focused on price transparency and direct payments for care, raised $125 million in its Series C funding round at a $1 billion valuation.
Drive Capital led the funding round with participation from new investors BOND, Tiger Global, Menlo Ventures, and existing investors Cathay Innovation and GreatPoint Ventures.
Including the latest funding round, Sidecar Health has raised more than $175 million since its founding in 2018.
The company plans to use the new funds to scale its “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.
Unlike traditional insurance (where a member pays a fixed amount for any eligible, medically necessary service or prescription medication that he buys), the Sidecar Health mobile app allows members to customize and design their health insurance plans based on their specifications and includes options such as insurance price and provider comparison and shopping and a payment card.
The app and payment technology allow members to see their benefit amounts for more than 170,000 medical services and prescription drugs before accessing care.
“The plans we designed to give Sidecar Health members two things: the money they need to purchase care and the information to make decisions that are right for them,” said Patrick Quigley, co-founder, and CEO of Sidecar Health. “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.”
The company is currently operating in 16 states.
“Before I came to Sidecar Health, I had plans that looked great, but they were difficult to use. Hidden fees. Asterisks on statements. I know insurance is complicated, but I want clarity,” said Scott Kammerman of Houston, who has been a Sidecar Health member since May 2020. “With Sidecar Health, it’s very straightforward. I know the costs upfront.”
Digital Health companies raised $14.8 billion in 2020, a 66% increase compared to $8.9 billion in 615 deals in 2019. Learn More