With this funding, the company should now be valued at $ 1.5 billion
Healthcare shouldn’t really be as difficult to navigate as it is, but because it’s so confusing and complex, there are real ramifications: More than half of employees don’t understand their health benefits. This results in people not getting the care they need because they don’t know how to access it, which leads to poorer health outcomes.
Collective Health led the way in solving this problem by enabling employers to enroll their employees on health plans through an online platform that suits their specific needs and is easier to understand than traditional health plans.
The company announced $ 280 million in funding in a Series F round. This marks the company’s first funding since raising a $ 205 million round in June 2019 and is now said to be worth $ 1.5 billion.
Collective Health was founded in 2013 after Ali Diab, the company’s co-founder and CEO, fell ill with a life-threatening illness. Experience dealing with his insurance company, which he said was worse than dealing with the disease, led him to start a company to reduce the complexity and burden of paying health care.
Employers work with Collective Health to create health plans that meet the needs of their populations by bringing together medical, dental, pharmacy and visionary networks in addition to other health programs the employer has put in place for their employees.
This enables employees to choose the best plan for their needs and have a clear understanding of all of its benefits, including medicine, pharmacy, dentistry, and eyesight. In addition, employees can access their health and damage information online and via a mobile app.
Collective Health, which has seen membership growth 10-fold over the past few years, currently has a membership satisfaction rate of over 90%.
The company’s new round of funding was led by Health Care Service Corporation (HCSC), the largest customer-owned health insurer in the United States. The company operates in five states. New and existing investors including DFJ Growth, Gründerfonds, G Squared, Maverick Ventures, NEA, PFM Health Sciences, SoftBank Vision Fund 1, Sun Life and others also participated.
This investment builds on an existing partnership between Collective and HCSC, announced in March, through which HCSC will provide its customers with access to Collective Health’s digital platforms and services, starting with self-funded Blue Cross and Blue Shield customers in Illinois and Illinois Texas, beginning January 1, 2022. It is then planned to expand into all of HCSC’s markets.
Collective Health plans to use the new funds to accelerate adoption of its platform over the next few years with the goal of bringing Collective Health to millions more employees.
(Image source: collectivehealth.com)