Employee Benefits

Tech-forward, third-party administrator health plan company raises $30M series A

Flume Health offers a platform for customized health plan administration for insurers who want to develop customized health plans to target certain populations. The company says it can bring tailored plans to the point of launch in just six months.

Flume Health raised a $30 million round of Series A funding earlier in March, which the company plans to use to scale its personalized health plans for self insurers, according to a news release. Optum Ventures lead the round, with new investor Cigna Ventures contributing alongside existing investors: Accomplice, Crosslink Capital, ERA’s Remarkable Ventures Fund, Founder Collective, Primary Venture Partners, and Route 66 Ventures. This series brings Flume’s total raised to $40 million.

“Flume’s focus on simplifying health plan design and management is critical to helping create health plans that truly fit the lifestyle and needs of consumers,” said Jon Sklaroff, principal at Optum Ventures, in the press release. “We believe [Flume’s] health plan administration tool, built on a modern digital architecture, will enable companies to deliver individualized health plans and personalized healthcare at scale.”

The New-York based startups offers a platform for customized health plan administration to companies acting as a third party administrator on behalf of self-insured employers. Generally if a company wants to offer a personalized insurance plan, it can prove costly and time consuming, so the insurer – in this case, large employers — may turn to a third party administrator (TPA) to handle it. For those companies looking for a TPA to oversee enrollment, claims processing, compliance, and payments, and those looking to target specific populations, Flume believes it has a tech-forward solution rapidly.

Flume also works with care providers who want to create personalized health plans for employers. As a case study, it points to a customized plan it created for Firefly Health in just six months.

“We are excited to help people through plans that meet their unique needs and are tailored to their lifestyle,” said Cedric Kovacs-Johnson, CEO and founder of Flume Health in a news release. “Reaching our Series A milestone in just six months is a testament that our investors share our values and believe in Flume’s ability to help reinvent the shape and texture of health plans for American healthcare consumers.”

In addition to shortening timelines for companies, Flume emphasizes the tailored nature of its plans and labels itself a turnkey solution. As an example, Flume points to the specialized plan it designed for Hue Health, which focuses on advanced primary care.

“With our combined technical expertise and Flume’s deep understanding of the intricate balance between patients, providers, and plans, we can analyze our clients’ networks and provide a truly seamless experience to our target client base—self-funded employers—and their employees,” said Jake Kerr, CEO of Hue Health in the press release.

Photo: Eva Almqvist, Getty Images

 

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