Centivo scores $34 million in Series B funding to provide affordable healthcare to self-funded employers
Centivo, a New York-based healthtech startup building a digital health plan aimed at self-funded employers, today announced it closed a $34 million Series B funding round to help employers deliver high-quality and affordable healthcare to their employees. The round, which was led by B Capital Group, brings the company’s total funding to date to $68 million.
Founded in 2017 by Alan Cohen, Ashok Subramanian, Boris Khomut, Jordan Silvergleid, Ruth Berkowitz, Stuart Roth, and Tahasin Alam, Centivo is a new type of digital health plan that is built to save 15% or more compared with traditional insurance carriers and is easy to use for employers and employees. Centivo was launched to bring cost sustainability to employers and affordable, high-quality healthcare to the millions of Americans who struggle to pay their healthcare bills. Centivo aims to align incentives among employers, members, and providers to deliver and use high-value healthcare.
As an alternative to traditional insurance carriers or third-party administrators, Centivo offers the technology, network, claims processing, customer support, and population health management to fully administer health benefits for all or a portion of an employee population.
The Centivo model emphasizes the partnership between individuals and their primary care team as the proper model to coordinate healthcare needs. Centivo’s clinical partners are dedicated to controlling costs and helping members navigate the healthcare system, aided by personalized patient/doctor matching tools. Members are rewarded for working with their primary care team and choosing high-value care and are supported through a user-friendly app and their concierge. Employers get an ally that diligently roots out waste and is accountable for performance.
“The rising cost of healthcare continues to be a challenge for both employers and their employees,” said Karen Page, General Partner at B Capital Group, who is joining the Centivo Board of Directors. “Centivo is structurally lowering the cost of healthcare purchasing by using technology and analytics to create efficiencies and improve outcomes. Their solution yields sustainable savings and boosts quality for the long term for employers and employees alike.”
Centivo was purpose-built to serve the self-funded employer and allows them to offer a turn-key benefits solution that meets the needs of a diverse workforce. With Centivo, employers can offer their employees affordable and predictable costs, a high-tech member experience, exceptional service, and a range of benefit options including both traditional and proprietary networks.
“Nearly half of adults said they find it difficult to afford their health insurance deductible and even more have skipped or delayed care because of the cost. The COVID-19 pandemic is putting even more financial stress on these individuals and the companies that employ them,” said Centivo CEO and co-founder Ashok Subramanian. “Excellent healthcare shouldn’t break the bank, and Centivo is proving it can be delivered affordably and effectively. By curating a network of top providers and leveraging data analytics, we can offer lower costs and help members effectively navigate their healthcare journeys.”
In 2019, Centivo experienced phenomenal growth, tripling the number of clients and members it serves. Provider partners include leading health systems including Mount Sinai Health System, Orlando Health, Scripps Health, and UCLA Health, among others, as well as independent practices.
Centivo’s health plan solution is available to mid-sized and large employers in New York, New Jersey, Connecticut, Southern California, Florida, and North Carolina, and will be expanding to additional markets in 2021.