The latest in health insurance startup financing: Collective Health raises $100 million
Collective Health employs latest digital technologies to provide tailored insurance programs for individuals and employees. Latest funding of $100 million marks a major step forward for Collective Health in the digital health sector.
In a world where technology is changing rapidly, people in the US are ignoring their health unconsciously. This is the reason that many healthcare startups are concerned about the health of individuals and their family members. They are coming up with new ideas in health insurance niche to protect the families from sudden health hazard. Health Insurance is nothing but the protection of insured person so that he can save money concerning medical expenses such as surgery, medicines, and hospitalization. The startups involved in health insurance niche have some exceptions in their insurance plans. They do not give insurance to critical illnesses or regular medical check-ups.
The healthcare market in the US is undergoing intricate challenges certainly in health insurance niche. Giant companies like Amazon, JP Morgan, and Berkshire Hathaway came forward and collaborated so that they can develop eHealth solutions for the people living in the US. Their collaboration will certainly help the employees to enhance their digital health skills, thereby focusing on the health of individuals. Apple is excited to lunch its own health clinics for their staff.
Health insuranc startup Collective Health analyzed these trends and decided to utilize machine learning and predictive analysis to provide tailored health care programs for individuals and employees.
The startup recently received $100mn funds from new and existing investors Maverick Ventures, Alphabets investment arm GV. However, Collective Health got funds from other sources, raising a total of $230 mn. The company will use these funds to expand their business operations.
CEO and co-founder of this startup Ali Diab said, “The way we access, pay for, and improve healthcare in the US is undergoing a fundamental shift—one driven by employers. Employers not only pay for the vast majority of private healthcare in America, they are also running healthcare plans that pioneer the most innovative approaches to delivering care, creating a massive market opportunity for a new generation of healthcare companies.”
Collective Health is an excellent startup in which they work with self-insured employers who take the responsibility of their employees by paying attention to medical claims. This way the employee needs to interact with Collective Health for an issue related to Health insurance.
Ali further added that Collective Health would ease the employer’s ability to buy insurance as the company will take care of all antiquated technology and legacy systems involved in health insurance.
This will result in lowering costs, removing inefficiencies of the people working in the US. “
The startup has collaborated with Sun Life Financial and Mubadala Ventures to expand their data analytics technology, further enhancing workforce health management system. The company is removing its outdated tools such as fax machines to increase the efficiency of their eHealth services.
Until today, over 120,000 members and 30 enterprise clients have been using Collective Health. The startup also supports eBay, SpaceX, and TechCrunch.
Future of health insurance startups seems bright with the incorporation of latest digital technologies into healthcare delivery.
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