{"id":8507,"date":"2017-08-23T17:20:44","date_gmt":"2017-08-23T17:20:44","guid":{"rendered":"https:\/\/rsoftsolution.com\/blog\/lumity-raises-19m-to-simplify-employee-health-care-choices.html"},"modified":"2017-08-23T17:20:44","modified_gmt":"2017-08-23T17:20:44","slug":"lumity-raises-19m-to-simplify-employee-health-care-choices","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/lumity-raises-19m-to-simplify-employee-health-care-choices.html","title":{"rendered":"Lumity raises $19M to simplify employee health care choices"},"content":{"rendered":"


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As companies get bigger and bigger, their needs are going to change \u2014 including, probably most importantly, their options for health care as their employee base expands and the costs of those plans start to balloon. But the end result is that employees could be presented with a confusing set of plans to pick from without a whole lot of guidance.<\/p>\n

There\u2019s where Lumity<\/a> comes in. The startup looks to provide employers with tools that optimize health care costs and simplifies the approach to picking a healthcare plan for their employees. The end product is a screen with around four boxes that an employee can choose a health care plan, which makes sense as companies reach into the hundreds or thousands of employees and the process of signing on gets more and more complex. Lumity said today it raised $19 million in a financing round led by Draper Fisher Jurvetson to help build out efforts to attract customers, which already include Lyft and GoFundMe.<\/p>\n

\u201cWe take on primary employee support,\u201d Lumity co-founder Tariq Hilaly said. \u201cWe deal with all employee questions, we deal with all the enrollment technology, and deal with all the data analytics. We put in place a set of plans that are better for the employees, and essentially reduce the cost of plans without compromising the benefits quality through using things like prescription data.\u201d<\/p>\n

One example is prescription data, which Lumity customers can voluntarily submit in order to help plan out their best health care plans. At first, Hilaly and the team weren\u2019t 100% sure that employees would want to opt-in and share that data. But around 90% of the employees on the platform have actually opted into the service, which has given Lumity more data to chew on as it continues to refine its algorithms.<\/p>\n

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\u201cData obviously has a flywheel attached to it,\u201d Hilaly said. \u201cThe more you get, the better the models, and then the better the outcomes. We\u2019re taking the benefits problem and applying both a technology and a service component. It involves interfacing with lots of different systems. I think that, certainly as the complexity and the breadth of what we do have expanded, the moat around it has expanded.\u201d<\/p>\n

The company last raised financing in September 2015, and since then, it\u2019s continued to gather more data on its customer base. That\u2019s a requirement for companies that look to predictive analytics to help manage risk and determine the best health care plans, especially in the face of a lot of potential competition from regional brokers that have a lot of experience and expertise. Lumity has to ensure that virtuous cycle \u2014 get more data, create a better experience, and then use that experience to convert new customers \u2014 continues if it\u2019s going to stay alive.<\/p>\n

Lumity\u2019s pitch is that the company won\u2019t necessarily lock you into a single platform. That\u2019s part of the reason why Hilaly says companies would pick it over a product like Zenefits, which given that it targets the benefits space would likely be one of its strongest competitors. Zenefits, however, targets multiple different employment areas for companies \u2014 which makes sense for smaller companies but not necessarily as they grow into larger ones.<\/p>\n

\u201cThey\u2019ve taken those three things, put them in a bundle, and probably for companies under 100 employees that might make sense,\u201d Hilaly said. \u201cIn our market, it starts at around 100 and then goes up, people are less concerned about that all-in-one. They have different needs and systems. They might want ADP for payroll, for example. As they get larger, some may want to use Workday. We don\u2019t focus on trying to build an all-in-one, we don\u2019t focus on trying to lock you into our platform. We focus exclusively on benefits, that\u2019s where you spend the most money.\u201d<\/p>\n

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Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/RoKs_Mv-rrA\/<\/p>","protected":false},"excerpt":{"rendered":"

As companies get bigger and bigger, their needs are going to change \u2014 including, probably most importantly, their options for health care as their employee base expands and the costs <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19],"tags":[25],"class_list":["post-8507","post","type-post","status-publish","format-standard","hentry","category-enterprise-software","tag-enterprise"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t