Soda Health, which offers a benefits management 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 grocery, health product and pharmacy services benefits. It offers a smart benefits card that members can use for approved goods and services. Customers can also receive analysis to help them identify coverage gaps and improve star ratings. Additionally, Soda Health offers tools that help health plans simulate different combinations of health benefits. The company primarily serves Medicare Advantage insurers.

The $50 million Series B funding 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.

According to the announcement, Caitlin Donovan, partner at General Catalyst, will join Soda Health’s board of directors.

“We believe there are smarter ways to optimize health plan spending. “Soda Health and its &more network offer a solution that puts additional benefit dollars to better use – delivering better data, closing gaps in care and improving patient outcomes on what we believe is a best-in-class, secure and flexible platform,” Donovan said in a statement. “Healthcare is a connected ecosystem, and when a company balances the needs of payers, providers, retailers and patients, it’s a win for everyone.”

With the funding, Soda Health will scale its operations, launch new data products and expand into new service categories, said Robby Knight, the company’s CEO.

Nearly 33 million adults will enroll in Medicare Advantage plans in 2024, giving them access to over $130 billion in benefits and premiums for their healthcare needs. As inflation makes it harder for seniors on fixed incomes to afford everyday items like groceries and over-the-counter products, Soda Health says these benefits have become a key factor in plan selection. However, the administration of these benefits was inadequate, leading to confusion and making it difficult for beneficiaries to fully utilize them.

“We want to make health care smarter for the people the system serves,” Knight said in an email. “We create value for the entire healthcare ecosystem by bringing members, plans and retailers together. Members get more of their needs from the places they already shop, making them healthier and lowering the overall cost of care.”

Another benefits management company is NationsBenefits, which works with managed care organizations and offers additional benefits, flexible cards and member retention solutions.

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