22 Sep, 2021, 08:32 ET
BUFFALO, N.Y., Sept. 22, 2021 /PRNewswire/ -- Centivo, a new health plan for self-funded employers that is anchored around leading providers of value-based care, announced today that it has raised an additional $51 million in funding, less than 10 months after its previous round. These funds will support Centivo's rapid growth and expansion amid increased demand from employers for health plans that are structurally built to address employee healthcare affordability. It will also support the development of expanded products and services such as a fully integrated virtual primary care-centered health plan, which was recently launched in Florida.
B Capital Group, a leading global technology investor, and Maverick co-led the round. Additional existing investors, including Bain Capital Ventures, Company Ventures, Define Ventures, F-Prime Capital, HarbourVest Partners, Ingleside Investors, Nassau Street Ventures, an AVG fund and various individuals also participated.
Since implementing its first client in 2019, Centivo now serves employer clients ranging in size from 100 employees to Fortune 500 companies and has increased its member count ten-fold. By the end of 2022, Centivo's health plan will be available in half of the top 20 metropolitan areas in the country. The firm also recently developed a new strategic distribution arrangement with the Business Health Care Group (BHCG) in eastern Wisconsin.
"Since first investing in Centivo, I have been extremely impressed with the market momentum and scale the company continues to generate," said Karen Page, General Partner at B Capital Group, and a member of Centivo's Board of Directors. "Our enthusiasm for how Centivo is delivering on its mission and vision of affordable, quality healthcare is strong, and we are proud to co-lead this round of financing."
Centivo's market momentum is verified by significant savings and improved clinical results:
- Employers save 15% or more compared to traditional health insurance carriers
- Employee members realize a 68% reduction in cost-sharing 1
- 90% of Centivo members select their primary care team within the first two months of coverage, crucially important given the fact that 1 in 4 Americans do not have a primary care physician 2
- Members increase primary care visits 24%, including a 50% jump in preventive care 3
- Members go to the emergency room 24% less, urgent care 38% less and inpatient admissions drop 11% 3
1Centivo Partnership Plan average actuarial value of 92% versus 75% for a typical plan. 2Carroll, Linda, "Declining number of Americans have a primary care provider," Reuters, December 16, 2019. https://www.reuters.com/article/us-health-pcp-trends-idUSKBN1YK1Z4. 3Compared to Milliman commercial benchmarks
"Self-funded employers and their employees are facing a true healthcare affordability crisis in this country, and we believe Centivo is primed to be the leading driver of change for the better," said Ambar Bhattacharyya, Managing Director at Maverick Ventures, and a member of Centivo's Board of Directors. "It has been impressive to watch Centivo's rapid growth and success as they continue to pave the way to make healthcare effective and affordable."
"We thank our investors, clients and provider partners for supporting the transformative power of Centivo and our vision of helping even more employers restore healthcare affordability for their employees," said Ashok Subramanian, CEO of Centivo. "In this era of COVID and challenging talent attraction and retention dynamics in the workforce, it gives us tremendous pride to help employers offer their employees 1980s levels of healthcare affordability while also saving their companies money."
To learn more, please visit centivo.com.
Centivo is a new type of health plan anchored around leading providers of value-based care. Centivo saves self-funded employers 15 percent or more compared to traditional insurance carriers and is easy to use for employers and employees. Our mission is to bring lower cost, higher quality healthcare to the millions of working Americans who struggle to pay their healthcare bills. 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 proprietary primary care-centered ACO models as well as traditional networks. For more information, visit centivo.com or follow us @Centivo on LinkedIn or @CentivoHealth on Twitter.
About B Capital Group
B Capital Group is a multi-stage, international investment firm founded in 2015 by Raj Ganguly, Eduardo Saverin, Howard Morgan, and Kabir Narang. B Capital invests in companies transforming large traditional industries across borders and geographies. Leveraging a global team of seasoned experts and a strategic partnership with BCG, B Capital helps founders navigate business challenges, raise capital, and attract talented leadership at every stage of the startup lifecycle. B Capital invests in enterprise technology (e.g., consumer enablement technologies, enterprise application software, infrastructure, security, AI/ML), fintech and insurtech, industrial and transportation, and healthcare tech and Bio IT. The B Capital portfolio includes global, industry-leading companies like Aetion, Atomwise, Bounce, Centivo, Carro, Dailyhunt, DataRobot, Evidation Health, FalconX, Icertis, Innovaccer, Kopi Kenangan, Ninja Van, Notable Labs, Payfazz, Synack, Ula, YaloChat and XingYun. For more information, visit http://www.bcapgroup.com/.
About Maverick Capital
For over 25 years, Maverick Capital has invested throughout a company's life cycle - from early ventures to publicly traded companies. Maverick invests in private companies through Maverick Ventures, which focuses on early-stage companies, and Maverick Growth, which focuses on growth stage and pre-IPO companies. More information is available at www.maverickventures.com.
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