Individual Coverage Health Reimbursement Arrangements (ICHRAs) are continuing to gain the interest of employers and investors. And Venteur’s $20 million Series A round announced on Tuesday is another example of that.
San Francisco-based Venteur helps employers administer ICHRA plans, in which employers offer their employees pre-tax dollars to purchase health insurance. Venteur’s AI platform also provides employees recommendations to help them select benefits, and they can build their own personalized health plans tailored to their needs. These personalizations are based on age, gender, zip code, prescriptions, risk profile and more. The company has served 600 businesses ranging from a few employees to 5,000 employees.
The $20 million funding round was led by Informed Ventures and American Family Ventures and included participation from Morgan Health, Catalyst by Wellstar, Ingeborg Investments, Plug and Play, Techstars, Revelry Venture Partners and Houghton Street Ventures. In total, Venteur has raised $30 million.
“Venteur is revolutionizing how businesses provide health benefits, making personalized health insurance more accessible and sustainable through ICHRA,” said Amanda Joseph, principal of American Family Ventures, in a statement. “Their technology-driven approach empowers companies and employees alike, addressing a critical need in today’s evolving workforce.”
The financing will help Venteur enhance its platform, reach more businesses and use AI to improve efficiency, according to the announcement.
The announcement comes as healthcare costs are on the rise. The average annual premium for family coverage has increased by 314% since 2004. ICHRAs offer the potential to lower costs, particularly for small employers. They also give employees more choice in their healthcare, as they’re able to choose the health benefits that best work for them.
“Our healthcare system has become exorbitantly unaffordable and inaccessible, not only for individuals, but for businesses in particular,” said Stacy Edgar, co-founder and CEO of the company, in an email. “Universal health plans burden organizations of all sizes from a cost perspective, and also present major guardrails and limitations in any individual employee’s ability to seek care that specifically addresses their unique needs. We’re putting the power back in the hands of the individual with increased flexibility and ownership in their healthcare choices through a more affordable model that provides financial breathing room for the employer.”
Venteur isn’t the only company meeting the rising demand for ICHRAs. Other companies that help employers administer ICHRAs include Remodel Health and StretchDollar, both of which also recently announced funding.
When asked about Venteur’s future goals, Edgar said it’s all about scale.
“We’ve succeeded in validating the concept for businesses of all sizes – from early stage to enterprise – and now we’re investing in the resources to expand our reach,” Edgar said. “In addition to promoting affordability and accessibility into the healthcare space, we need systems and models that allow employees to take full control of their healthcare decisions, removing that responsibility from the employer entirely.”
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