Soda Health, which offers a benefits administration platform, has raised $50 million in Series B funding to expand its services, the company announced last week.
The Bentonville, Arkansas-based company connects health plans and their members with a network of retailers (including CVS, Walgreens and Kroger) to support benefits for food, health products and pharmacy services. It offers a smart benefits card that members can use on approved goods and services. Customers can also get an analysis to help them identify care gaps and improve star ratings. In addition, Soda Health offers tools to help health plans simulate different combinations of health benefits. The company primarily serves Medicare Advantage insurers.
The $50 million Series B financing round was led by General Catalyst and included participation from former Humana CEO Bruce Broussard, Lightspeed Venture Partners, Define Ventures, Qiming Venture Partners USA and SVB Capital. In total, Soda Health has raised $100 million.
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Caitlin Donovan, partner at General Catalyst, is joining Soda Health’s board of directors, according to the announcement.
“We believe there are smarter ways to optimize health plan spending. Soda Health and their &more network offer a solution that uses supplemental benefit dollars more wisely — delivering better data, closing care gaps, and driving patient outcomes on what we see as a best-in-class, secure, and flexible platform,” Donovan said in a statement. “Healthcare is an interconnected ecosystem, and when a company aligns the needs of payors, providers, retailers, and patients, it’s a win for all.”
With the financing, Soda Health will scale its operations, launch new data products and expand to new benefit categories, said Robby Knight, CEO of the company.
Nearly 33 million adults are enrolled in Medicare Advantage plans in 2024, giving them access to over $130 billion in supplemental benefits and rewards for their healthcare needs. With inflation making everyday items like groceries and over-the-counter products harder to afford for seniors on fixed incomes, these benefits have become a key factor in plan selection, according to Soda Health. However, the management of these benefits has been inadequate, leading to confusion and making them difficult for beneficiaries to fully utilize.
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“We want to make healthcare smarter for the humans the system serves,” Knight said in an email. “We are adding value to the entire healthcare ecosystem by bringing the members, plans, and retailers together. Members get more of their needs served at the places where they already shop, which makes them healthier and reduces the total cost of care.”
Another benefits administration company is NationsBenefits, which partners with managed care organizations and offers supplemental benefits, flex cards and member engagement solutions.
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