Rework Well being, an Particular person Protection Well being Reimbursement Association (ICHRA) supplier, has raised greater than $100 million in development funding, the corporate lately introduced.
The Indianapolis, Indiana-based firm helps employers and workers construct and entry ICHRA plans. ICHRA permits employers to offer workers a month-to-month allowance of tax-free cash that they’ll use to purchase healthcare providers for his or her wants. Rework Well being’s providers embody plan creation and administration, name heart help, automated quoting and worker onboarding. It lately acquired ICHRA firm PeopleKeep and serves small, medium and huge employers.
“Rework Well being helps deal with the rising problem of unpredictable and rising medical health insurance prices for employers. … By transitioning organizations to ICHRA, we offer employers with better finances stability, permitting them to manage prices 12 months over 12 months whereas providing workers extra flexibility and selection of their well being advantages,” stated Austin Lehman, CEO of Rework Well being, in an e-mail.
The $100 million in funding is from Oak HC/FT and Hercules Capital, in accordance with the announcement.
“We have now been trying on the ICHRA area for just a few years now, ready for a stand out firm with the mix of hyper-scaling potential, an formidable go-to-market technique and centered dedication from the management workforce,” stated Andrew Adams, co-founder and managing associate of Oak HC/FT, in an announcement. “We’re honored that the Rework workforce selected to associate with us and can’t wait to help them of their efforts to construct out the ICHRA marketplace for employers and brokers throughout the U.S.”
The financing will help the corporate’s nationwide growth, enhance its platform capabilities, and develop its partnerships with brokers, companies and carriers, Lehman stated. Rework Well being may even put money into scaling its operations, advancing buyer help and bettering expertise integrations.
The corporate’s funding comes because the ICHRA market has been on the rise: ICHRA adoption elevated 29% from 2023 to 2024, in accordance with the HRA Council. It’s not the one firm offering ICHRA help both. Different corporations embody StretchDollar and Gravie.
Whereas Lehman didn’t identify these corporations as opponents, he stated Rework Well being units itself aside from others with a “giant in-person workforce, offering best-in-class customer support by means of devoted account managers and onboarding groups assigned to every buyer. This hands-on strategy ensures personalised help all through the ICHRA journey.”
Image: Feodora Chiosea, Getty Photos