Maxwell Health Raises $6 Million To Take On Benefits Management

12-18-2013 5-01-10 PM

Benefits management startup Maxwell Health raises another $6 million in an extension of its mid-summer series A funding round that had already netted $2 million. The new funding was led by Vaizra Investments, with additional funding contributed by Catalyst Health Ventures. Tribeca Ventures, Serious Change, Lerer Ventures, and BoxGroup were all part of the original series A round, and returned to contribute more during the second call. Maxwell has been on a fundraising tear this year, raising $8 million since it’s February 2013 launch. In total, Maxwell has raised $9.3 million, including its seed round.

The company is building a web-based platform that will simplify the process of shopping for, and selecting, insurance plans. Sound familiar? Unlike, Healthcare.gov, Maxwell’s launch went as well as the startup could have hoped for. In just 10 months, Maxwell has already integrated its platform to offer plans from 40 percent of the top 100 insurance brokers in the country.

The platform goes beyond streamlining the enrollment process. Maxwell offers a full concierge service that supports employees throughout their time at their company by pairing them each with an advisor. Having a Maxwell Health advisor provides employees a resource that they can use to ask questions about their benefits, get recommendations on local physicians, and get help resolving insurance issues.

An employee incentive program is also included with Maxwell’s platform. It helps employers encourage their staff to make healthy decisions by tracking workouts, and encouraging health eating. Employees are able to earn points on the incentive plan, which can then be traded in for cash, or prizes. Maxwell hopes employers might one day put a potential raise on the table as a healthy choices reward.

Maxwell delivers this platform, for free, to small and medium-size employers who use it to automate enrollment and management of their health benefits program. From an employer perspective, Maxwell delivers value by reducing their FTE requirements, and by providing a management dashboard that helps businesses make benefits decisions by tracking key metrics like company spending on health benefits.

Maxwell monetizes its platform by charging brokers a monthly fee to have their insurance plans represented on the platform. The company is looking to expand the types of company’s it can cater to by adding different business services that reach beyond health benefits. The company is working to incorporate a broad suite of general HR functions that might attract new brokers over time.

With more brokers joining every day, and a customer base that has reportedly doubled in the past six weeks, Maxwell sought the additional funds to finance significant short-term growth projections. The new funds will be used to significantly expand customer service staffing, as well as bolster its sales, and engineering departments.


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