Santa Ana-based SureCo, an administrator of Individual Coverage Health Reimbursement Arrangements, has raised $23 million in funding in a Series A round led by Health Velocity Capital, with additional investment from Kaiser Permanente Ventures.
According to a recent announcement, SureCo plans to use the funding to expand its team and technology platform, which enables large employers to offer pre-tax contributions that employees can use to purchase individual health plans from major local carriers.
SureCo CEO Matthew Kim emphasized that ICHRAs encourage competition and provide greater flexibility for both employers and employees. He described the model as an innovative alternative for delivering large-group health benefits.
Interest in ICHRAs has been rising as businesses continue to grapple with rising health insurance costs. SureCo reported that more than 44 percent of large employers are considering adopting the model by 2026, drawn by its cost predictability, affordability and administrative efficiency.
