Former Iora Health Execs Launch Medicare Enrollment Guidance Startup

Navigating the Complexities of Medicare: Connie Health Secures $13 Million in Series A Funding

Typically, employers provide employees with three distinct healthcare insurance choices. However, transitioning to Medicare, and specifically Medicare Advantage, introduces a significantly wider range of options. Nationwide, over 3,500 plans are available, with an average of 30 choices accessible to individuals within their specific geographic location.

Addressing a Critical Need for Guidance

Connie Health is positioned as a key resource for seniors facing this complex landscape. The company focuses on streamlining the selection process, reducing the overwhelming number of plans to a curated selection of the most suitable options based on individual care needs.

The company was founded in 2019 by Oded Eran, CEO, David Luna, chief revenue officer, and Michael Scopa, chief growth officer. These three co-founders previously held executive positions at Iora Health – a primary care company currently in the process of being acquired by OneMedical for $2.1 billion – where they directly observed the challenges seniors encounter.

From Provider Insight to Consumer Solution

“Having experience on the provider side, we recognized that while healthcare is inherently local, many individuals lack a comprehensive understanding of the differences between hospitals or the intricacies of local networks,” explained Eran in an interview with TechCrunch. “Seniors require a trusted source of information, and establishing relationships with local advisors, whether through phone consultations or in-home visits, fosters that essential trust.”

Recent Funding and Investor Confidence

Based in Boston, Connie Health recently announced a $13 million Series A funding round, spearheaded by Khosla Ventures and Pitango Healthtech. This brings the company’s total funding to $16 million. An initial seed round of $3 million, also led by Khosla Ventures, was secured in January 2020.

Both funding rounds also attracted investment from AbstractVentures, Dynamic Loop Capital, Arkitekt Ventures, and a consortium of angel investors. Notable angel investors include Assaf Wand, CEO of Hippo Insurance, and Zach Weinberg and Nat Turner, the founders of Flatiron Health.

Market Opportunity and Disruption

With 55 million Medicare beneficiaries benefiting from advancements in Medicare Advantage and value-based care, Samir Kaul, founding general partner at Khosla Ventures, identified a substantial market ripe for disruption. He highlighted the strength of the team assembled by Eran and the company’s ability to launch successfully during the challenges of the pandemic.

“The Medicare Advantage sector is poised for continued growth,” Kaul stated. “Historically, technology has played a limited role in this space, and Oded is uniquely positioned to introduce technological solutions that enhance market efficiency.”

The Rise of Medicare Advantage and Consumer Confusion

Medicare Advantage represents the private market component of the insurance program. Eran explained that the government is actively encouraging competition and innovation, leading to an influx of new providers and a greater variety of plan options, all aimed at better cost management. However, this increased complexity often results in confusion for consumers.

Individuals frequently struggle to evaluate the latest offerings, often defaulting to familiar plans rather than actively seeking optimal choices.

Connie Health’s Technology-Driven Approach

This is where Connie Health’s expertise comes into play. The company’s technology analyzes an individual’s existing healthcare providers, current medications, and desired benefits. This data is then processed to identify the most appropriate plans from the thousands available.

Expansion and Future Growth

Connie Health initially launched its consumer platform in Arizona in October 2020. The recent funding has enabled expansion into Texas, with plans to extend operations to Illinois and other states experiencing significant demographic shifts as more individuals become eligible for Medicare.

The company intends to utilize the new capital to broaden its product offerings beyond Medicare plans.

Rapid Growth and Local Focus

Within its initial operating states, Connie Health has expanded its market presence to seven locations and increased its local agent network by a factor of fifteen.

“Our goal is to make local expertise accessible to everyone, empowering individuals to make informed decisions and secure the healthcare they deserve after a lifetime of contributions,” Eran emphasized. “We are adopting a market-by-market strategy, recognizing that healthcare is fundamentally rooted in the community.”