Stride Health Raises $2.4 Million To Scale Its Private Insurance Exchange

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When Healthcare.gov launched with a underwhelming thud, Stride Health CEO and founder Noah Lang saw an opportunity. Launching shortly after, the company set to work building a competitor to Healthcare.gov, and in true Silicon Valley style, it’s mobile-first.

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The concept behind the platform is that if users are willing to share more detailed medical data, like current medications, preferred primary care physician, and a more personal general questionnaire, then health costs can be forecasted for individuals fairly accurately and, by using these forecasts, an ideal insurance plan can be identified that has the lowest premiums and co-pays for the services or medications that the individual will likely need.

“Stride Health starts by generating a financial forecast for your entire year’s potential health investment — and then narrows to your personalized plan recommendation based on your preferences for doctors, drugs, and quality of care.” – Noah Lang, Stride Health Founder

Next, Stride lets users play out hypothetical medical situations to get a better understanding of what their total out of pocket cost would be if they were to have a baby within the next year, or develop appendicitis. The app calculates total out of pocket costs for a variety of “what if” scenarios to help users fully understand the extent of the coverage they are buying.

Stride Health monetizes the platform by taking a commission every time a user enrolls in health insurance. The company has targeted the 1099 workforce, going so far as to partner with emerging on-demand service companies like Uber to provide health insurance options for its fleet of drivers.

The concept was good enough to get Stride Health accepted to Rock Health’s sixth class this past summer, and after soft-launching its app in California, the company is now rolling its platform out across Florida, Illinois, Pennsylvania, New York, and Texas. To pay for the ramp up, Stride has raised a $2.4 million seed round co-led by Fidelity Biosciences and NEA. With an estimated 50 million freelance workers in the US, there’s a lot of profit to be had connecting freelance workers with insurance plans, especially when the competition is Healthcare.gov and its equally disappointing state-run exchanges.


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