Health InsurTech startup Sidecar Health raises $20 mn funding

By Pavithra R

California based Sidecar Health, a health InsurTech company empowering people to be in control of their health and spending, has announced that the company has raised $20 mn in its most recent funding round.

The investment round was led by Cathay Innovation and joined by new investors Kauffman Fellows, Comcast Ventures, and Anne Wojcicki, co-founder, and CEO of 23andMe. The funding round also saw participation from previous investors, including GreatPoint Ventures and Morpheus Ventures. The Firm has raised over $40 mn to date.

The company intends to save the United States’ $1 trillion in healthcare costs annually by empowering consumers to shop around for health services using its Visa payment card and mobile app. It is planning to use the funding to fuel its growth by expanding to new geographies and to grow its team.

“This latest funding accelerates us towards our goal of significantly lowering the cost of health care in the U.S. while increasing access to care. Plans offered by Sidecar Health successfully address the agency problem created by traditional health insurance. By empowering patients to be purchasers of healthcare and re-aligning incentives throughout the system, Sidecar Health members benefit from lower health costs and greater access. As our membership base increases, price transparency and consumer choice push down the average price of health care services for everyone,” said Patrick Quigley, CEO of Sidecar Health.

Founded in 2018, Sidecar Health is personalized and affordable health insurance for the individual market. The InsurTech offers a different approach to health insurance, allowing its members to leverage doctors’ discounted “self-pay” or “cash” rates, saving members 40% compared to traditional insurance. Its proprietary payment technology lets members pay doctors at the time of care from the plan’s claims account using a Sidecar Health Visa card.