SAN MATEO, Calif.--(BUSINESS WIRE)--Enterprise health insurance software and services leader Collective Health has secured $81 million in Series C funding. The round includes financing by new investor Google Ventures and returning investors NEA and Founders Fund along with Maverick Capital, Redpoint Ventures and RRE Ventures. Collective Health will use the new funding to offer its employer health insurance solution to companies nationwide in 2016, expanding beyond California for the first time.
Collective Health is also announcing that it is teaming up with leaders in healthcare across the U.S. including Anthem and Blue Shield of California to bring companies its complete health benefits solution. In the less-than two years since its founding, Collective Health has raised $119 million in total funding, including $32 million in its Series B round in March 2015. In 2016, the Collective Health platform will serve 30,000 members and is expected to process over $200 million in health insurance claims. By expanding availability of its employer health insurance solution to companies across the U.S., Collective Health is on a trajectory to process more than $2 billion in claims in 2017.
“We’re working to shift the focus of health insurance from profits to people,” said Ali Diab, CEO of Collective Health. “This significant infusion of capital comes at the perfect moment, enabling us to make our solution available to companies across the U.S. The funding will also enable us to continue to invest in building out our world-class team, forge new relationships with key partners and significantly grow our customer base. Ultimately, this funding will give Collective Health a big boost in our mission to make the healthcare experience in our country something we can all feel proud of.”
Founded in 2013 to transform the US health insurance experience, Collective Health has grown to more than 120 employees working to rebuild every layer of the health benefits experience. In the last year, the health insurance technology innovator added several enterprise companies headquartered in California to its customer base.
One of the company’s newest customers, announced today, is Activision Blizzard, Inc. Activision Blizzard, a member of the S&P 500 and a "100 Best Companies To Work For®" 2015,” is the world’s most successful video game company. It develops and publishes some of the most successful and beloved entertainment franchises in any medium, including Call of Duty®, Skylanders®, World of Warcraft®, StarCraft® and Heroes of the Storm.™
“We want our employees and their families to have the best healthcare experience possible, and Collective Health can help us deliver on this commitment,” said Milt Ezzard, Activision Blizzard’s Senior Director of Global Benefits. “We believe the key to a positive healthcare experience is applying technology and excellent member care to get the right resources to employees and their families at the right time. Activision Blizzard is known for leveraging technology and innovation to improve employee health by partnering with companies that share this vision, and we’re excited to work with Collective Health.”
Despite the fact that companies spend over a $1 trillion a year providing health insurance to their employees and their families, more than a third of America’s total annual healthcare spend, most of these companies rely on antiquated, paper-based systems to select and manage their health insurance offerings and to communicate with insured employees and their dependents.
Along with providing an unparalleled benefits experience to members, Collective Health provides benefits managers and HR teams with the platform they need to communicate and deliver the value of employer-sponsored health insurance benefits to employees and their families. Because health insurance is the second largest cost for most enterprises, tracking and managing the financial components of health insurance is critical and requires real-time visibility into numerous areas from premiums to utilization. The Collective Health technology platform surfaces and simplifies what employers and employees need to know to make informed and intelligent health insurance decisions, during enrollment and throughout the year.
“The best companies are not just motivated to keep health spending low, they also want their employees to be productive, healthy and happy. In this way, self insured employers are holistically motivated by their workforce's overall wellness. Collective Health is a novel way for employers to organize and analyze healthcare data so they best achieve this goal,” explained Google Ventures General Partner Blake Byers. “Simultaneously, Collective Health's dashboard empowers employees by giving them the information and tools they need to manage their healthcare options in a way that's intuitive and accessible."
To learn more about how Collective Health works, visit collectivehealth.com/product.
About Collective Health
Collective Health is a software and services company creating the healthcare experience we all deserve. Its team of engineers, designers and actuaries are starting by redefining the $1 trillion dollar market of employer-sponsored health insurance with data driven products. Using Collective Health's complete health insurance solution, companies can design, administer and transform the consumer experience of health insurance by harnessing the power of design and technology. Founded in October 2013, Collective Health is currently serving California based employers, and will be expanding its geographic coverage nationally starting in 2016. The company is based in San Mateo, CA. For more information, visit http://www.collectivehealth.com.
SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group.