Collective Health offers a customizable digital platform and partner ecosystem that unifies employer benefits, provider networks, PBMs, virtual care, and digital health programs into a seamless member experience. The company’s products aim to reduce the administrative burden of delivering health benefits while guiding employees toward better health and employers toward lower costs. Collective Health reports a member satisfaction rate above 90% and has seen 10x member growth in recent years. The business is focused on expanding platform adoption and partner integrations to bring its experience to millions more Americans. The company plans to scale its technology and services further following a major funding round to accelerate deployment and market reach. Founded in 2013, Collective Health is headquartered in San Francisco and also has locations in Chicago and Lehi, Utah. Collective Health builds a unified software platform that reimagines how health plans work for employers and the populations they cover, combining claims and payments technology, a member app, and Member Advocates. Its patent-pending machine learning engine, CH Cortex™, identifies individual member care needs and drives navigation to appropriate partners and providers. The company serves more than 200,000 members across over 45 enterprise clients and integrates with roughly 80 health partners on its open platform. Collective Health plans to accelerate adoption across all 50 states by expanding national sales, engineering, and customer experience teams in San Francisco, Chicago, and Lehi, and to add new local and national network and digital-health partnerships. Product priorities include improving claims and payments speed, transparency around cost of care, faster fraud detection, and new employer-facing analytics through Collective Health Insights. The company will use the newly announced funding to expand its product and engineering team and advance four patents pending across its product suite. Collective Health builds the Health Platform, a workforce health management system designed with a consumer-grade user interface to make employer healthcare and financial information more accessible. The platform ingests eligibility files and medical, pharmacy, dental, and vision claims, plus utilization data and member search queries, then analyzes patterns to surface actionable insights. It automates vendor invoice verification to prevent overpayment and aims to reduce fragmentation caused by disparate legacy systems. The company emphasizes user experience to help employers understand plan mechanics, review claims, manage healthcare spend, and better utilize available programs for employees. Collective Health plans to use the new funding to grow its workforce, accelerate product development, and expand its U.S. presence with a new Chicago office and larger footprints in Georgia, New York, and Southern California. Leadership frames the product as a way to lower costs and inefficiencies, improve the experience for employers and workers, and reduce administrative burden with AI-powered automation. Collective Health offers an enterprise platform that lets employers pick and choose which benefits to cover, aiming to cut out traditional insurers and make coverage more efficient and less expensive. The company was co-founded by Ali Diab and Rajaie Batniji, a physician and political economist at Stanford, after Diab experienced a severe insurance denial. Collective Health is expanding beyond its Silicon Valley origins and plans to hire sales, marketing and infrastructure staff to increase availability in other U.S. cities. The startup expects to double in size in the next few years and has already doubled since its last round. As of 2016 the platform was on pace to serve 30,000 members and process more than $200 million in health insurance claims. The new funding will also support partnerships and cross-promotion with other healthcare organizations. Collective Health helps employers cut out the insurance-company middleman and create their own insurance plans through an employer self-insurance platform. The company builds an easy-to-use interface where employees can select the health services they need. Founded in 2013 and based in San Mateo, California, Collective exited stealth in August 2014. It currently serves only California-based employers but plans to expand its geographic coverage nationally starting in 2015. Collective announced it raised $38 million in a round led by Founders Fund and NEA, with Formation 8, Redpoint Ventures, RRE Ventures, Subtraction Capital, and Rock Health participating. The company said the new funding will enable it to meet rapidly growing demand for its employer self-insurance platform.

Total raised

$604M

Funding rounds

7

Latest round

Series F

Latest activity

May 2021