 | |
| Company type | Private |
|---|---|
| Industry | Health insurance |
| Founded | 2018 |
| Founders | Patrick Quigley and Veronica Osetinsky |
| Headquarters | El Segundo, California |
Key people | Patrick Quigley (CEO) Veronica Osetinsky (COO) |
| Website | sidecarhealth.com |
Sidecar Health is an American health insurance company headquartered in El Segundo, California. The company offers major medical plans for midsize and large companies based in Ohio, Georgia and Florida with members across 44 states. [1]
Sidecar Health was founded in El Segundo, California in 2018 by Patrick Quigley and Veronica Osetinsky. [2] [3] The pair were previously executives at Katch (formerly Vantage Media), an online advertising technology company and customer acquisition marketplace for insurers. [2] [4]
The company launched its first insurance product in 2019 in Texas, [2] [5] as the state's large uninsured population offered a sizable potential customer base. [6] [5] By the end of the year, Sidecar Health had expanded to Alabama, Arkansas, Florida, Georgia, Kentucky, and North Carolina. [7] [8] [9]
Sidecar Health initially raised $18 million in funding through venture capital firms GreatPoint Ventures and Morpheus Ventures. [6] [10] In July 2020, it raised $20 million in a new round of funding that included Comcast Ventures, Kauffman Fellows, and 23andMe CEO Anne Wojcicki. [11] It closed its Series C funding round in January 2021, led by Drive Capital, at $125 million—bringing it to a $1 billion valuation, often referred to as unicorn status. [12] [3] Funding supported staffing and further expansion, along with investment in new insurance products. [13] In 2024,Sidecar Health raised $165 million in a Series D fundraise led by Koch Disruptive Technologies. Other investors included Cathay Innovation, GreatPoint Ventures, Morpheus, Drive Capital, Duke University, BOND, and Menlo Ventures. [14]
The company no longer sells fixed indemnity or "excepted benefit" insurance plans [15] . As of 2024 [16] , the company evolved to exclusively offer fully Affordable Care Act (ACA)-compliant, large group comprehensive major medical health plans — available as both fully-insured and self-funded solutions [16] — for employers with 51 or more employees. [1]
All Sidecar Health insurance products are built on users paying providers for care directly at the point of service. [2] [12] [3] The website and mobile app provides members their benefit amounts, and offers local market data including prices and reviews among local providers. [13] The company provides members with a Sidecar Health Visa debit card to pay for services. [2] [12] Such cash payments are often lower than negotiated rates with insurance companies according to academic studies. [17] [12] [13] Upon payment, the company pays its share as determined by its reimbursement schedule, and any remaining amount is charged to the user's account. If a member spends less than the benefit amount, Sidecar Health shares the savings with them in the form of cash back.
Sidecar Health's current plans are designed to meet all federal and state requirements for major medical coverage under the ACA. These plans include full emergency protections under the No Surprises Act and cover all essential health benefits required of ACA-compliant insurers. [18] [19]
In 2024, Sidecar Health raised an additional $165 million in a Series D round led by Koch Disruptive Technologies to expand into Florida. [20]