California-based SureCo, an Individual Coverage Health Reimbursement Arrangement (ICHRA) administrator focused on companies with at least 200 employees, announced today, September 30, that it completed a $23 million Series A funding round led by Health Velocity Capital, with participation from Kaiser Permanente Ventures.
ICHRA legislation allows businesses to provide tax-free funds for employees to purchase their own individual health insurance. ICHRA brings an employer population into the ACA (Affordable Care Act), Stacy Edgar, CEO of the healthcare benefits startup Venteur explained to Healthcare Innovation earlier this month. “The more people who adopt ICHRA, the healthier the ACA becomes and the stronger it becomes in terms of pricing. It's a saving for the employer and it's a saving for the individual, as it also helps people who have been historically excluded from the system.”
According to a press release by SureCo, the investment will allow the company to expand its technology and team, making it easier for large groups to contribute pre-tax dollars to employees for purchasing their preferred individual health plans from all major carriers in their area. “Signaling confidence in ICHRA’s ability to provide access to affordable coverage for American workers, the funding round was driven by thought-leading organizations in the health insurance industry.”
As businesses face the sharpest health insurance cost increases in 15 years, the ICHRA market is gaining momentum, according to SureCo, which highlighted that over 44 percent of large employers are considering the model for 2026.
"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," said Matthew Kim, Co-founder and CEO of SureCo, in a statement.
