Created to help employees figure out health benefits, HealthJoy raises $30 million
HealthJoy, a platform designed to make it easier for employees to use their healthcare benefits, has raised $30 million in Series C funding led by Health Velocity Capital. Returning investors also participated, including U.S. Venture Partners, Chicago Ventures, Epic Ventures, Brandon Cruz and Clint Jones. This brings HealthJoy’s total funding so far to $53 million.
By integrating with healthcare service providers and partnering with benefit consultant agencies, HealthJoy simplifies the process of finding and using benefits. Its features include an AI-based virtual assistant and healthcare concierges. The startup says it has a monthly login rate of 33% and that its clients, which now includes 500 employers, see a tenfold increase in the employee use of benefits, including telemedicine.
Since TechCrunch covered HealthJoy’s Series B round last year, the company has launched two new services. One is a price transparency tool called HealthJoy Rewards that allows companies to provide incentives for employees to use more cost-efficient services.
“For example, an MRI in Chicago can vary in price from around $500 for an independent clinic to around $3,500 in a hospital system,” HealthJoy founder and CEO Justin Holland told TechCrunch. “Our rewards platform allows companies to customize the incentive, but we provide nearly 100 recommendations. We’re showing an amazing ROI for companies that have adopted the program since we’re targeting high-cost procedures.”
The second new service is called HealthJoy EAP, an employee assistance program that Holland says is a priority for further development. It gives 24/7 access to short-term counseling, with several sessions available for free.
“Addressing mental heath is of extreme importance for companies in today’s world. Access to traditional counseling is on decline in many rural areas due to lack of access. In cities, costs have risen so many users are priced out of the market,” he says.
The funding will also be used to improve HealthJoy’s virtual assistant, develop new services, integrate with more partners and aggregate data. HealthJoy plans to add 200 employees in its Chicago office during 2021, with the goal of doubling its engineering team. Future plans include working with more small- to medium-sized businesses and a potential partnership to serve Medicare recipients.
Other startups focused on employee benefits include League, Catch and Collective Health. Holland says HealthJoy integrates with, instead of competing with, benefits administration platforms and differentiates by being able to work with any benefits package.
Health Velocity Capital partner Saurabh Bhansali will join HealthJoy’s board of directors. In a press statement, Bhansali said “HealthJoy offers proven technology solutions to help navigate employees through our nation’s complex and costly healthcare system, one that costs US employees over $1.2 trillion each year. Healthjoy has shown that it can deliver substantial cost savings to employers while simplifying the employee healthcare experience.”