NEW YORK--(BUSINESS WIRE)--Chapter, the leading technology-driven Medicare Advisor that aligns incentives in Medicare plan selection and guides beneficiaries through the Medicare enrollment and renewal process, announced today that it has raised a $17 million Series A financing round. The investment was led by Narya Capital with participation from Susa Ventures, Maverick Ventures, XYZ Venture Capital, Core Innovation Capital, and Health2047 Capital Partners. Peter Thiel has also joined the company’s board of directors.
The rise in the US’s aging population underscores the need for more solutions tailored to older Americans. By 2030, over 20 percent of Americans will be older than 65, the age at which most people become eligible for Medicare.
“Most Americans navigate Medicare alone or unintentionally use resources that limit their options. Medicare coverage is too important to get wrong: signing up too late can result in lifetime penalties. Furthermore, plans have such significant differences in benefits and premiums that it’s critical to search every single option. Unlike traditional resources, Chapter searches every plan at a unique level of granularity. As a result, we help our members save thousands of dollars so they can retire on their own terms,” said Chapter’s CEO, Cobi Blumenfeld-Gantz.
Legacy Medicare brokers are not required to search a minimum number of plans, disclose the number they do search, or minimize financial incentives to favor particular plans. Legacy online tools suffer from similar issues. The Commonwealth Fund, a nonprofit research institution, has found that legacy online tools typically represent fewer than half of Medicare Advantage options.
Chapter has built and maintains a proprietary technology platform used by its advisors to search every Medicare plan nationwide, including Medicare Advantage, Medicare Supplements, and standalone Part D prescription plans. Furthermore, the compensation earned by Chapter’s licensed advisors does not vary based on specific plan recommendations or selections. As a result of its unique model, Chapter not only supports Americans directly, but also the types of organizations they trust most, including non-profits, religious institutions, community groups, financial advisors, employers, and employee benefits organizations.
Together, Chapter’s technology and team help Americans maximize Medicare through greater choice and clarity, while minimizing cost and complexity. “It is a commonplace that dealing with the government is difficult. It is uncommon that anyone does anything about it. Chapter’s ability to help people navigate Medicare’s bureaucratic maze makes it both admirable and valuable,” said investor and Chapter Board Director Peter Thiel.
Along with the funding, Chapter is proud to announce its partnership with the National Council on Aging (NCOA) as a partner Medicare Advisor that meets the NCOA’s Standards of Excellence for Medicare. Chapter earned this designation following a comprehensive vetting process that ensures an ethical, informative, and consumer-first experience for beneficiaries seeking to optimize Medicare coverage.
“Choosing health plans well without a decision-aid is impossible – there are too many factors to consider and understanding them all takes too much time. Chapter synthesizes crucial information necessary to help people make informed choices. Chapter’s team actively converse with researchers in order to understand the most up-to-date measures of plan quality,” said Jason Abaluck, Professor of Economics at Yale.
Chapter has also partnered with Palantir Technologies to accelerate the development of the most comprehensive Medicare data platform. This data infrastructure allows Chapter and its partners to continue to provide best-in-class support for older Americans seeking to choose the right coverage, use and understand benefits, and renew coverage each year.
Chapter plans to use the capital to accelerate its product development efforts, expand its team of engineers and licensed advisors, and further invest in supporting its members.
Chapter was founded by Cobi Blumenfeld-Gantz, Corey Metzman, and Vivek Ramaswamy.
About Chapter: Chapter is a Medicare Advisor with a simple commitment: it’s impossible to find a better Medicare recommendation or better support anywhere else. Chapter’s team and technology search every Medicare option nationwide -- more than 24,000 -- at an unprecedented level of detail. Chapter’s licensed advisors provide personalized, end-to-end guidance to Americans navigating Medicare. The advisory team earns identical compensation irrespective of the selected plan or carrier, ensuring that each Chapter member receives recommendations tailored solely for their needs. Additionally, Chapter’s tools support older Americans in deciding when and how to sign up for Medicare and whether they can improve existing coverage to get better benefits for less. Chapter also hosts hundreds of educational events every year and partners with employers, benefits professionals, non-profits, religious institutions, financial advisors, and community leaders.
For more information, visit www.askchapter.org.