SureCo, an administrator specializing in Individual Coverage Health Reimbursement Arrangements (ICHRA), has announced the successful completion of a $23 million Series A funding round. This funding round was spearheaded by Health Velocity Capital, a notable investment firm in the healthcare sector, with additional participation from Kaiser Permanente Ventures, the venture capital arm of one of the largest integrated healthcare organizations in the United States.
The funding will enable SureCo to significantly expand its technological infrastructure and augment its workforce, thereby facilitating large organizations in contributing pre-tax dollars for their employees to purchase individual health plans of their choice from a diverse array of major insurance carriers operating in their regions.
This funding reflects growing confidence in the ICHRA model’s capacity to improve access to affordable healthcare coverage for American workers. The participation of leading organizations in the health insurance industry underscores the growing recognition of ICHRA as a viable option for employers looking to enhance their healthcare offerings.
Health Velocity Capital’s limited partners encompass a range of insurance carriers that collectively provide coverage to over 175 million Americans, while Kaiser Permanente Ventures has closely observed the development of ICHRA since its introduction in 2020, identifying it as a strategic avenue for both growth and market expansion in the current healthcare climate.
With this new funding, SureCo is poised to accelerate its growth trajectory and enhance its position within the large-group ICHRA marketplace. The company plans to invest in expanding its technology platform, which will include enhanced integration capabilities with various insurance carriers to streamline processes for both employers and employees. Additionally, SureCo plans to expand its award-winning service team to better meet the growing demand from clients, ensuring they receive exemplary support as they navigate the complexities of employee health coverage options. Through these initiatives, SureCo aims to solidify its role as a leader in the evolving landscape of employee health benefits.
KEY QUOTES:
“ICHRAs provide individual choice and foster competition in the market that benefits employers and employees alike. The construct represents an innovative, flexible option for large-group health benefits.”
“This funding comes at a pivotal moment for both SureCo and ICHRA. We’re seeing unprecedented interest from large employers who are looking to offer their employees more choice and gain visibility into their healthcare costs, while lifting the administrative burden of traditional benefits administration. With the backing of Health Velocity Capital and Kaiser Permanente Ventures, we’re positioned to meet this demand and help more organizations transition to this consumer-driven benefits model.”
Matthew Kim, Co-founder and CEO of SureCo
“The market dynamics have shifted dramatically. When we initially evaluated the market a few years ago, carriers acknowledged that ICHRA was not a priority, and benefits consultants had limited awareness of its flexibility and advantages. This time, nearly every carrier we engaged had a dedicated point person and an emerging ICHRA strategy, while consultants consistently described ICHRA as a key tool in their arsenal.”
Saurabh Bhansali, Managing Partner at Health Velocity Capital
“We see ICHRA as empowering employees with choice, enabling them to select the best health plans for their needs. SureCo guides employees through this process via an intuitive and high-quality end-to-end experience.”
Daniel van den Bergh, Senior Investment Director at Kaiser Permanente Ventures
