Cedric Kovacs-Johnson launched Flume Health after watching his own family struggle with payments for his sister’s surgery.
“When we looked at who was calling the shots [on prices] it was this litany of service providers that was unknown to us and the cost was unknown to us until we got the bill weeks later,” says Kovacs-Johnson.
The family thought their medical bills would be covered by one insurance provider, but as bills kept rolling in, they realized that what had been promised as one insurance company was actually an insurance plan managed by a benefits manager whose plan was not as extensive — and that the insurer was only managing the relationship with the benefits manager.
So the former MakerBot employee launched Flume in February 2017 to make the payment process more transparent for the hundreds of companies that are self-insuring their employees to cope with rising healthcare premiums.
Roughly 80% of companies with more than 500 employees are providing their own insurance plans, or outsourcing the administration of insurance coverage to plan administrators and startups that see the woefully poor service these companies provide.
Collective Health is one of the best funded, with $230 million* in capital committed to the company, including a $110 million round last year. Another startup, Limelight Health, has raised $40 million in financing as it tries to grab market share by providing tools to make the self-insured health management process easier for companies.