Remodel Health, an Individual Coverage Health Reimbursement Arrangement (ICHRA) provider, has completed a financing round of more than $100 million to continue scaling the fast-growing business and creating more innovative options in the emerging ICHRA market.
ICHRAs create predictable annual health benefit costs for employers who want to offer affordable healthcare benefits, often lower in cost than group health insurance.
The latest investment round, co-led by Oak HC/FT and Hercules Capital, gives Remodel Health additional capital to support innovations in the ICHRA market and continued company expansion.
Offering Advanced Tech for the Healthcare Sector
Remodel Health offers a technology platform that makes creating and managing ICHRA plans much easier. The platform includes tools for plan administration, call center support, automated quoting, employee onboarding, HRIS integrations, payments with carriers, and access to ancillary products.
According to the company, its end-to-end solution simplifies ICHRA adoption for employers and provides a user-friendly experience for employees.
ICHRAs are growing rapidly and are expected to see some significant expansion over the next several years, according to Remodel Health. The company lists several of the key advantages of the ICHRAs, including:
- Flexibility: Employers are able to set contribution levels, and employees have options for more personalized benefits.
- Cost Savings: ICHRAs can offer cost savings to employers, especially small and mid-size businesses.
- Tax Advantages: Contributions come out pre-tax, and both employers and employees avoid taxes on those dollars.
- ACA Exchange Access: Employees will have access to their allowance with an ICHRA to purchase health insurance on the ACA exchanges.
According to Remodel Health CEO Austin Lehman, the company’s technology will help accelerate growth and increase access to medical care.
