Employer health benefits management platform Collective Health has scored $280 million in Series F funding.
The round was led by Health Care Service Corporation, with additional participation from new and existing investors, including DFJ Growth, Founders Fund, G Squared, Maverick Ventures, NEA, PFM Health Sciences, SoftBank Vision Fund 1, Sun Life and others.
This latest infusion of cash values Collective Health at $1.5 billion, according to Bloomberg.
WHAT IT DOES
Collective Health brings together companies’ various health benefits into one platform to let employers to manage their offerings while assisting employees to navigate their healthcare.
“One of the most significant pain points in our economy and society is the lack of a powerful and flexible technology infrastructure to help people understand, navigate, and pay for healthcare. Collective Health has changed that with our platform,” Ali Diab, the CEO and cofounder of Collective Health, said in a statement.
The platform includes a hub for employers to oversee their medical, pharmacy, dental and vision plans; a set of member advocates who can support workers in finding care, tools for claims and payment processing; and dashboards showing insights into employers’ programs performance.
WHAT IT’S FOR
The San Francisco-based startup plans to use the funding to scale its platform.
“This latest round of funding enables us to further our vision of empowering American workers and their families to live healthier lives,” Diab said. “By expanding the scope and reach of our platform and partner ecosystem, we can broadly deploy the infrastructure for the next generation of healthcare.”
Additionally, the funding will help support Collective Health’s recently announced partnership with Health Care Service Corporation. Beginning next year, the customer-owned health insurer and a major seller of Blue Cross Blue Shield health plans will offer Collective Health to its self-funded BCBS customers in Illinois and Texas, with plans to expand into all of HCSC’s markets.
MARKET SNAPSHOT
Collective Health is not alone in creating digital health solutions for employers.
Eden Health also offers health-benefit-navigation tools on its platform, but also acts as a direct-to-employer provider of virtual and in-person care. Last week it shared its latest feature, which lets employees opt in to share their vaccine status with their company.
Buoy Health also recently released an employer-facing tool that helps employers gauge their workforce’s interest in the COVID-19 vaccine and design educational strategies around inoculation.
Firefly Health recently raised $40 million to enter the employer-sponsored market with the launch of its health plan offering.
There’s also Cleo, which serves as an employer-based family-benefits platform. Most recently, it announced a diversity and inclusion initiative to help working Black and BIPOC-identifying families navigate today’s healthcare system.