Dive Brief:
- Collective Health is focused on helping employers by allowing customers to tailor the insurance options they want to offer their employees. This includes ways to eliminate paper-based systems for management and administration of those plans, according to The New York Times.
- The company said the raised money will be used to hire more employees and expand outside its homebase of California. It also wants to develop partnerships and cross-promotion with other healthcare leaders, as reported by TechCrunch.
- Google Ventures' investment indicates the potential of Collective Health's platform to expand nationwide. The company estimates it will serve 30,000 members and process more than $200 million in health insurance claims next year.
Dive Insight:
The company, started in 2013 by Ali Diab and Rajaie Batniji, was established as a way to cut out health insurance and offer employers a way to choose which options they want covered for their employees.
Ali Diab, chief executive and company co-founder said in a statement, "We're working to shift the focus of health insurance from profits to people. This significant infusion of capital comes at the perfect moment, enabling us to make our solution available to companies across the U.S."
Google Capital also invested $32.5 million in another health insurance startup, Oscar Health Insurance Group, which is focused on making buying health insurance easier for consumers, as previously reported in Healthcare Dive. Approximately 40,000 members have signed up in New York and New Jersey to date.