By Manya Saini
(Reuters) - Healthcare firm Centivo on Tuesday said it has secured $75 million in equity and debt financing, backed by Cone Health Ventures and the largest U.S. bank JPMorgan Chase (NYSE:JPM)'s division Morgan Health.
The company did not disclose the valuation at which the latest capital was raised.
Centivo offers a primary care-centered health plan as an alternative to traditional U.S. insurance carriers, one of the world's most expensive healthcare systems. Despite having insurance, medical services can be inaccessible to many, especially those in the low-to-middle income bracket, due to high deductibles and out-of-pocket costs.
"Our biggest competitors are the major insurance companies," Centivo CEO Ashok Subramanian told Reuters. "We've successfully reduced employee out-of-pocket costs by nearly $1,200 per year."
Out-of-pocket costs refer to expenses that individuals incur for healthcare services, even if they have insurance.
The company said it cut members' out-of-pocket costs by 71% in 2023, compared with the plans it replaced. The shift also typically resulted in saving employers 15% or more.
The company intends to use the new capital to enhance and scale its product technology and strike new partnerships.
"We will continue to grow our network of strategic partnerships with leading health systems to achieve integrated, coordinated, and cost-transparent care for our members," Centivo CEO Ashok Subramanian told Reuters.
Other investors included MemorialCare Innovation Fund, B Capital, Cox Enterprises, F-Prime Capital, and Ingleside Investors.
"JPMorgan Chase, along with other employers, are seeking opportunities to strengthen their employee health and well-being offerings without raising premium costs," Peter Scher, vice-chairman, JPMorgan Chase and Centivo board member told Reuters.
Debt facility for the raise was provided by venture debt firm Trinity Capital and JPMorgan Chase.
(This story has been refiled to remove the word 'Partners' from F-Prime Capital's name, in paragraph 9)