April 20, 2020

Flume Health raises $6m in additional venture funding

Cedric Kovacs-Johnson

Plus, we've hired a new COO. Keep reading for more details.

I started Flume Health with the conviction that the most powerful force in a person’s healthcare isn’t their doctor—it’s their insurance company. But broken incentives and out-dated systems are causing these companies to fail the patients who rely so heavily on them. So we set out to build a better TPA—one that aligns incentives between payors, providers, and members, and puts health outcomes first.

As we built Flume Health, we found the opportunity was even bigger than we realized. People don’t need a better TPA—they need a totally different way of designing and implementing health plans. As more and more employers turn to self-funding to manage rising costs, Flume is building a world where clients don't just choose between pre-packaged “silver” or “gold” plans—they create a plan that’s tailored specifically to their unique needs.

Today I’m happy to announce two major milestones in Flume’s quest to become the operating system for every American health plan:

First, we’ve raised an additional $6 million in venture funding from both new and existing investors, bringing our total funding to over $10 million. Second, I’m thrilled to announce that we’ve brought on Ann Joo Kim as our new Chief Operating Officer. Ann was most recently the Program Director at Haven, and before that she ran a TPA which covered over 200,000 lives. As we continue to scale up our operations and bring on new, larger groups, Ann will ensure our processes are efficient, consistent, and reliable across the board.

Both Ann and our investors have looked at our track record and decided that they want to be a part of what we’re building.

What does that track record look like? It looks like our clients saving an average of $4,862 PEPY in 2020, and coming in 22% under stop-loss expected claims costs. It looks like Case Construction, a 100-life group in Indiana, who saved so much money their first year with Flume that they decided to reimburse 100% of their employee premiums.

Flume is continuing to grow and invest across our organization. During this next phase, we’ll be especially focused on:

  • Bolstering Member Support. The Flume Concierge is a crucial part of our health plans. We’re bringing on more team members and building more advanced tooling, so we can engage members even more effectively and resolve issues faster. To lead these efforts, we've brought on Jael Guzman, a Concierge Manager with years of experience managing support teams at Aetna and other insurance organizations.

  • Developing new employer and advisor tools. Unbundling creates new opportunities, but employers and their advisors often struggle to handle the complexity that comes with it. We’re tripling the size of our engineering team and developing tools that help plan sponsors build and analyze their plans with unparalleled transparency and data access.

  • Expanding our vendor ecosystem. Our partners are reinventing what healthcare delivery looks like. Our job is to integrate them seamlessly into our clients' plans, and make sure they’re used properly. We’re doubling down on our vendor ecosystem, integrating with more top-quality vendors and making it easier than ever for our clients to choose the solutions that are right for them.

We have exciting times ahead of us at Flume Health, and I’m thrilled to have all of you along for the ride.

-Cédric Kovacs-Johnson

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