SureCo has successfully raised $23 million in Series A funding, led by Health Velocity Capital and Kaiser Permanente Ventures, to enhance its ICHRA technologies and support for large employers seeking consumer-driven health benefits solutions.

Target Information

SureCo is a prominent administrator specializing in Individual Coverage Health Reimbursement Arrangements (ICHRA), focusing on companies with a workforce of at least 200 employees. Recently, the company announced the successful closure of a $23 million Series A funding round, which was led by Health Velocity Capital with contributions from Kaiser Permanente Ventures. This investment aims to enhance SureCo's technology and team, facilitating large organizations to provide pre-tax contributions allowing employees to purchase individual health plans from various major carriers available in their vicinity.

Industry Overview in the United States

The health insurance market in the United States is undergoing substantial transformations as industries adapt to rising costs. Currently, many businesses are experiencing the highest increases in health insurance expenses in over 15 years. As a result, a significant portion of large employers (over 44%) are considering adopting ICHRA models by 2026, responding to the escalating need for more manageable and cost-effective healthcare solutions.

The ICHRA model, introduced in 2020, provides employees with greater flexibility and choice regarding their health coverage. It enables larger employers to offer diversified health options while