SureCo Secures $23 Million Series A Funding for Enhanced ICHRA Solutions Targeting Large Employers

SureCo Raises $23 Million Series A for ICHRA Growth

SureCo, a notable player in the administration of Individual Coverage Health Reimbursement Arrangements (ICHRA), has successfully concluded a hefty $23 million Series A funding round, spearheaded by Health Velocity Capital and supported by Kaiser Permanente Ventures. This investment marks a significant step for SureCo, whose focus is on companies employing at least 200 individuals.

The infusion of funds is set to propel the company's technology and workforce expansion efforts, thereby streamlining the process for large employers to allocate pre-tax dollars for their employees to select suitable individual health plans from various prominent carriers available in their respective regions.

As the healthcare landscape evolves, the funding signifies a strong belief in ICHRA's potential to provide affordable healthcare solutions for American workers. Since the inception of ICHRA in 2020, stakeholder interest has grown, with this latest funding round highlighting support from significant entities within the health insurance sector. Health Velocity Capital's partners include a multitude of insurance providers covering over 175 million Americans, while Kaiser Permanente Ventures serves as the investment arm of one of the country’s largest integrated healthcare organizations.

Matthew Kim, SureCo’s Co-founder and CEO, stated, "ICHRAs provide individual choice and inspire market competition, benefiting both employers and employees. This model represents an innovative approach to large-group health benefits."

In light of rising health insurance costs—the steepest increase seen in the last 15 years—there is a noticeable surge in interest towards the ICHRA model. Currently, over 44% of large employers report they are contemplating this model for implementation in 2026. This trend is predominantly driven by large organizations and their advisors, who are in search of dependable, cost-effective, and administratively streamlined solutions that address their employees' needs adequately.

Saurabh Bhansali, Managing Partner at Health Velocity Capital, commented on the shifting market dynamic, highlighting that while ICHRA was previously lower on the priority list for carriers and consultants, there is now a clear evolution with most insurers having dedicated resources and strategies to embrace ICHRA. He noted, "This time, nearly every carrier we engaged had a dedicated point person and an emerging ICHRA strategy."

Meanwhile, Daniel van den Bergh, Senior Investment Director at Kaiser Permanente Ventures, acknowledged this evolution by emphasizing ICHRA’s role in empowering employees to choose health plans that best meet their individual requirements. He reiterated that SureCo is equipped to guide employees through this process, ensuring a seamless and comprehensive experience.

Utilizing the new funding, SureCo aims to accelerate its growth trajectory, foster innovation in the large-group ICHRA sector, and expand its technological capabilities. Plans are in place to deepen integration with carriers and to bolster its award-winning service team to cater to increasing customer demand.

Matthew Kim concluded, "This funding arrives at a crucial moment for both SureCo and the ICHRA model. We are observing unprecedented interest from large employers keen on offering greater autonomy to employees while managing their healthcare expenses and diminishing the administrative load associated with traditional benefits. With the support of Health Velocity Capital and Kaiser Permanente Ventures, we are well-positioned to accommodate this demand."

About SureCo

SureCo is a premier health benefits technology entity that specializes in administering Individual Coverage Health Reimbursement Arrangements (ICHRA) tailored for large businesses. The platform allows these organizations to provide their workforce access to numerous individual health insurance options from prominent carriers while ensuring predictable costs and compliance support.

About Health Velocity Capital

Health Velocity Capital is dedicated to investing in avant-garde healthcare software and services companies with partners boasting over 90 years of combined experience as investors, entrepreneurs, and executives within the field. They have a history of backing pioneering companies that have transformed healthcare markets and achieved leadership status, which includes renowned names like Teladoc, Livongo, and Change Healthcare.