Former Iora Health Executives Raise $ 13 Million To Guide Seniors Through Medicare Enrollment – TechCrunch

Employers typically offer three health insurance options. When it comes time to switch to Medicare, particularly Medicare Advantage, there are more 3500 plans available nationwide, and an average of 30 plans someone can choose from in their particular area. Connie Health is guiding seniors through the Medicare maze, helping narrow those 3,000 plans down to a handful of better options based on care requirements.

The company’s three co-founders, CEO Oded Eran, Chief Revenue Officer David Luna, and Chief Growth Officer Michael Scopa saw this issue first-hand as executives at primary care company Iora Health, which is being acquired by OneMedical for $ 2.1 billion.

They started their venture in 2019 to develop a Medicare concierge service to help seniors easily navigate through those 30 plans to find the right one for them.

“We were coming from the provider side and we understood that even though healthcare is local, people don’t know the difference in hospitals or the ins and outs of local networks,” Eran told TechCrunch. “Older people need trust there, and when there are local advisers to meet over the phone or at home, that trust is gained.”

The Boston-based company announced Wednesday that it raised $ 13 million in Series A funding led by Khosla Ventures and Pittango Healthtech to give it a total of $ 16 million in funding. The company raised $ 3 million in a seed round in January 2020, also led by Khosla. The Seed and Series A rounds also featured participation from AbstractVentures, Dynamic Loop Capital, Arkitekt Ventures, as well as a group of angel investors, including Hippo Insurance CEO Assaf Wand and Flatiron Health founders Zach Weinberg and Nat. Turner.

Image credits: Connie Health

With 55 million Medicare consumers benefiting from major innovation in Medicare Advantage and value-based care, Kaul saw a large market being disrupted by Connie Health. He was especially impressed with the team Eran built and how the company was able to launch during the pandemic and stay nimble.

“The Medicare Advantage space is rich and will continue to grow,” added Kaul. “Technology has not played a major role here, and Oded will bring technology to make the market more efficient.”

Medicare Advantage is the private market part of the insurance program. Eran said the government is trying to drive competition and innovation, so there are plenty of new players coming in to create more plan options, more nuance, and to help better manage costs. At the consumer level, this creates a lot of confusion, he added. Potential clients have a hard time making decisions about the latest and greatest options, so they tend to stay in the status quo.

That’s where Connie Health comes in. The company’s technology takes into account the providers that someone sees, the drugs they are taking, and the benefits they would like to have, includes them in their model and, based on that, analyzes the thousands of plans available. and recommends the best settings.

Four months ago, Connie Health launched its consumer platform in Arizona, and with the new investment, it also began operating in Texas. Over the next year, Eran hopes to move to Illinois, where he is seeing big demographic changes as many people are moving to Medicare and other states. The new financing will also allow the company to diversify into other insurance products.

Within those states, the company’s presence grew to seven markets and its local agent base grew 15-fold.

“We are going to democratize access to local agents to help people make these often difficult decisions and find the health care they deserve and have paid for their entire working life,” Eran said. “We are taking this market-by-market approach because healthcare is in the community.”

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