Collective Health is the upcoming leader in employer sponsored health insurance, they have raised $38 million funding to scale up their employee health benefit programs. The company's funding has been led by Founders Fund and NEA, with participation from Formation 8, Redpoint Ventures, RRE Ventures, Subtraction Capital and Rock Health. With this investment Collective Health can fulfill the swiftly growing demand for its employer self-insurance platform.
Collective Health was founded in October 2013; it is presently serving California based employers and has plans to expand this year. Collective Health has a self-insurance platform where consultants can optimize employee health benefit programs using the power of data science and technology.
One hundred and fifty million Americans currently receive health insurance coverage through their employer, even after the failure of traditional health insurance plans to meet employers' needs. The plans are expensive; the fixed costs with logistical challenges of switching to self-insurance kept American employers locked into fully insured health plans. With the latest in cloud-based software technology and data science, Collective Health is democratizing access to self-insurance for the majority of American companies.
"Recently, a lot of attention has been paid to making individuals better consumers of healthcare, and health insurance in particular. However, in the United States, employers drive most health insurance purchasing decisions and cover the lion's share of healthcare costs," said Ali Diab, co-founder and CEO of Collective Health. "With the backing of investors behind such transformative companies as SpaceX and Workday, and by leveraging the latest in cloud-based software technology, UX design and data science, Collective Health has developed the first self-insurance SaaS platform for American employers to sponsor their employees' healthcare on their own terms, without the need for a traditional health insurance plan."
Collective Health has already demonstrated the remarkable benefits employers can accomplish by switching to its self-funding platform, where member satisfaction scores surpass traditional health insurance industry benchmarks. Collective Health also brings together medical, pharmacy, dental and vision benefits, underpinned by the country's top provider networks, in one platform. This simplifies the administration of self-insured company health benefit plans. Collective Health members and their employers enjoy information based on real-time health claims data, with mobile and web interfaces which provide anytime, anywhere access to health plan information and assistance.
"Collective Health represents a fundamental shift within the health insurance industry, allowing more companies to confidently migrate to self-funded programs for employees," said Mohamad Makhzoumi, Partner and Head of the Healthcare Services and Healthcare IT practice at NEA. "Ali and the team at Collective Health have developed a data-driven technology enabled experience that benefits all parties involved. Employers can minimize the risk that is commonly associated with self-funding, while their employees can take control of their healthcare with excellent UX design and mobile management. I'm overjoyed to partner with Collective Health to change the way companies provide, and employees' access, healthcare."
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