Health IT, Startups

Health insurance data startup Vericred closes $3.1M seed round

New York City-based Vericred has grown beyond its original mission of streamlining provider credentialing for health plans. Now, it helps potential insurance customers determine whether their physicians participate in specific payer networks.

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Vericred, a startup seeking to improve transparency for individuals and employers shopping for health insurance, has closed a second seed funding round, worth $3.1 million. New York City-based Vericred said it will apply the money to expand data services and to beef up its sales team.

Vericred has grown beyond its original mission of streamlining provider credentialing for health plans. Now, it helps potential insurance customers determine whether their physicians participate in specific payer networks.

“The health insurance market is going through significant disruption driven by the Affordable Care Act, consumerism and technology.  Health insurance shopping experiences are being fundamentally transformed by e-brokers, consumer-facing broker sales and quoting platforms, private and public health insurance marketplaces, and integrated payroll and benefit service providers,”  Vericred co-founder and CEO Michael W. Levin said in a written statement.

“Vericred is enabling this transformation through its provider-network data, empowering individuals and employers to make informed health insurance purchase decisions, including whether or not their doctors participate in plans,” Levin added.

The company, which started in March 2014, also landed $1.125 million in seed funding in November 2014.

Photo: Flickr user Thomas Hawk

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