Centivo: Improving Healthcare without Increasing Costs
January 29, 2021 | Ashley Brindamour
According to OECD Health Statistics, health spending per person in the U.S. was an estimated $11,000 in 2019 – nearly 50% higher than the comparable country average. That number continues to rise, exceeding $12,000 at the end of 2020.
Out of the 150 million Americans with insurance through their employer, over 70% are in self-funded plans. Their employers are responsible for the payment of claims rather than the insurance company. Centivo, an Alumni Ventures Group portfolio company, addresses this large demographic of 55,000 companies and 110 million employees through its affordable and easy-to-use healthcare platform.
A Different Approach to Healthcare
Centivo differentiates itself from traditional healthcare providers with a proprietary technology stack, driven by analytics and a focus on primary care providers to help customers save money. This includes real-time referral management with providers and partnerships with pharmacy benefits managers.
Centivo also secures better rates from providers by concentrating customer care options in specific geographies. This not only lowers costs for customers but helps Centivo establish itself with providers in crowded markets. The company’s target audience of nearly 110 million Americans constitutes an estimated $50 billion annual market.
Deal Highlights and AVG’s Involvement
Strong Investor Lineup: Centivo is backed by established VC firms, including B-Capital, Bain Capital Ventures, F-Prime, and Maverick.
Experienced Team: The company is led by an accomplished team of entrepreneurs and operators. A significant portion of the C-suite previously founded Liazon, a private benefits exchange with over 1,000 clients. The company was sold for $215M in 2013.