INDIANAPOLIS, Dec. 19,
2024 /PRNewswire/ -- Remodel Health, the #1
Individual Coverage Health Reimbursement Arrangement (ICHRA)
provider for brokers, today announced it has raised more than
$100 million from Oak HC/FT and
Hercules Capital, Inc. (NYSE: HTGC) in growth funding.
Remodel Health has raised more than
$100 million from Oak HC/FT and
Hercules Capital, Inc. in growth funding.
Remodel offers an end-to-end, white-labeled tech platform that
supports employers and employees with everything they need to
launch and access their ICHRA plans, including plan creation and
administration, call center support, automated quoting, employee
onboarding, HRIS integrations and payments with carriers and access
to ancillary products. Starting with the group to individual health
insurance shift in 2015, Remodel has become a dominant player in
the ICHRA space, bolstered by the acquisition of PeopleKeep in
early 2024. Together, the two companies are uniquely positioned to
serve small, medium and large employers, with a suite of products
across ICHRA and QSEHRA. With this investment from Oak HC/FT and
Hercules Capital, Remodel will look to continue its national
expansion.
Remodel stands apart from the competitive set with its
meaningful scale and a go-to-market motion defined by its
white-glove service, deep broker relationships and
easy-to-understand approach to marketing and sales. Importantly, as
employer health insurance premiums continue to increase, ICHRA
provides Remodel's customers with predictable annual benefits
costs, driving stability and an average of 30% savings for the
office of the CFO. Over the past 12 months, Remodel has focused
more on partnering with insurance brokers and agencies to support
its ICHRA expansion across the U.S. As a result, the Remodel
business grew 11x YoY in broker-led ICHRA bookings and this will be
a key area of growth and expansion for the business moving
forward.
"We are on a mission to resource organizations with missions
that matter, partnering with employers and their brokers to do so.
Remodel Co-Founders Justin Clements and Scott Lingle and I started trailblazing in 2015,
and PeopleKeep founder Paul Zane
Pilzer identified this shift like pension to 401(k) in the
early 2000's," said Austin Lehman,
CEO of Remodel Health. "We are now seeing it begin to come to
fruition. The Oak team have been great dreamers with us and have
great connections in the insurance payer space to accelerate growth
and help increase access to medical care and resource organizations
with missions that matter."
ICHRA was created in 2020 as a flexible alternative to
traditional group health insurance, offering choices around
contribution levels to employers and more personalized options
around benefits for employees. Similar to a 401K, employers of any size can provide an
allowance of pre-tax dollars to their employees. This is used by
employees for the purchase of some or all of their healthcare
premiums for insurance bought on the ACA exchanges. It offers an
exciting cost-savings proposition for employers, particularly small
and mid-size ones, who want to offer health insurance to their
teams, by allowing them to move their employees to state risk pools
to help offset costs, instead of trying to level-fund or
self-insure.
"We have been looking at the ICHRA space for a few years now,
waiting for a stand out company with the combination of
hyper-scaling potential, an ambitious go-to-market strategy and
focused dedication from the leadership team," said Andrew Adams, Co-Founder and Managing Partner,
Oak HC/FT. "We are honored that the Remodel team chose to partner
with us and cannot wait to support them in their efforts to build
out the ICHRA market for employers and brokers across the U.S."
Since its launch, the ICHRA market has been steadily increasing
and is projected to 10X by 2032. According to the HRA Council,
ICHRA adoption increased 29% from 2023 to 2024, with Applicable
Large Employers growing at the highest rate - of 84%. Remodel's
approach to distribution and plan partnership best positions them
to take advantage of this growth, now and in the future.
About Remodel Health
Remodel Health is the expert guide for employers and brokers
navigating the complexities of transitioning to ICHRA. With nearly
a decade of experience in the individual health benefits space, our
proprietary software and licensed health benefits experts deliver
tailored solutions for businesses with 100 to 10,000 employees.
Committed to best-in-class customer service, we provide hands-on
support throughout the process, ensuring successful implementation
and long-term success. Learn more about how we transform health
benefits at remodelhealth.com.
About PeopleKeep
PeopleKeep specializes in helping small and midsize businesses
offer affordable, flexible health benefits through the ICHRA and
qualified small employer HRA (QSEHRA). By focusing on expanding
access to coverage for employees often overlooked by traditional
employer-sponsored plans due to cost and complexity, PeopleKeep
empowers small employers to thrive. With easy-to-use software,
automated compliance, and a seamless employee experience,
PeopleKeep is committed to simplifying benefits administration and
making health coverage more accessible.
About Oak HC/FT
Oak HC/FT is a venture and growth equity firm specializing in
investments in fintech and healthcare. Using partnership as a
foundation, Oak HC/FT guides companies and founders at every stage,
from seed to growth, to create businesses that make a measurable
and lasting impact. Founded in 2014, Oak HC/FT has invested in over
85 portfolio companies and has over $5.3
billion in assets under management. Oak HC/FT is
headquartered in Stamford, CT,
with an office in San Francisco,
CA. Follow Oak HC/FT on LinkedIn and X and learn more at
https://www.oakhcft.com/.
About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest
specialty finance company focused on providing senior secured
venture growth loans to high-growth, innovative venture
capital-backed companies in a broad variety of technology and life
sciences industries. Since inception (December 2003), Hercules has committed more than
$21 billion to over 660 companies and
is the lender of choice for entrepreneurs and venture capital firms
seeking growth capital financing. Companies interested in learning
more about financing opportunities should contact
info@htgc.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/remodel-health-raises-more-than-100-million-to-continue-expansion-in-ichra-market-302335839.html
SOURCE Remodel Health