The way businesses approach health benefits for their employees has been massively disrupted by Obamacare. While the discussion on the positives and drawbacks of the Affordable Care Act is nuanced and ongoing, one fact is clear: choosing the right plan for a business and its employees has become a cumbersome, confusing process. Small and mid-size businesses are getting hit hardest with rising health insurance premiums, and many businesses end up over- or under-insuring relative to their actual needs, collectively costing employers and employees over $40 billion every year.
Lumity, who announced their funding by True, Social+Capital, and Rock Health this morning, wants to change that. Lumity has created a proprietary, data-driven SaaS benefits platform for small and medium-sized businesses to help employers and employees analyze and interpret their data in order to optimize health plan and benefits choices. The product is truly magical, saving money for employers while improving healthcare, all for free, except for broker fees. The secret sauce lies underneath, through deep data science that powers real-time health expense forecasting and plan recommendations all through a seamless, easy-to-use interface that provides incredible visibility.
The early results speak for themselves—early customer The Linux Foundation saved 34% in health plan savings using Lumity, which amounted to $400,000.
Co-Founders Tariq Hilaly and Senthil Naharajan bring a wealth of product, data and founding knowledge to their new venture: Tariq, whom we have known for almost 10 years, previously co-founded Motif Investing, a groundbreaking investing site that helps consumers build, buy and share investment portfolios based on real-world ideas. Senthil previously served as Vice President of Product Management at Rovi. Together, they have impressed us out of the gate with their extensive knowledge of this complicated industry, and their dedication to creating a better experience for companies and employees. We feel very strongly about the strength of this team and Lumity’s potential for market disruption, and we’re thrilled to have led their seed round and now participated in their A round.
Tariq and Senthil: Welcome to True!