Connie Health, a startup that matches seniors to Medicare plans, bought Redesign Health-backed competitor Keen Insurance Services as insurers step away from selling Medicare plans, driving seniors to look for new options.
The startup also announced that it raised an additional $29 million, bringing its total funding to date up to $45 million. New investors include Israeli health tech fund aMoon, SLS Partners and early-stage venture fund Primetime Partners, Connie’s CEO and co-founder Oded Eran told Endpoints News. Existing investors including Khosla Ventures participated in the investment.
Hit by rising medical costs, insurers have been cutting back on their Medicare businesses over the past year. Humana said it’s planning to drop a few hundred thousand members as it exits certain plans and counties. Centene is leaving at least six states, and Cigna is selling its whole Medicare Advantage business.
Bad news for big insurers is actually good news for brokers and startups like Connie, Eran said, as there’s a lot more demand for agents to help people navigate the system and find a new plan that suits them.
“Our role is much more in demand when there’s a lot of changes, there is a lot of confusion,” Eran said. “Our job is to come in and help people navigate the system.”
Connie reaches seniors through its network of agents in 11 states who connect with seniors in the local community, such as through relationships with doctors, soup kitchens, churches or even country clubs, Eran said.
Samir KaulKeen, a startup that also matches Medicare members with plans launched through health tech incubator Redesign Health, would provide Connie with its network of provider groups and the technology needed to help Connie reach more seniors after the acquisition. While Connie builds its relationships through local communities, the plan is to reach even more Medicare members via Keen’s relationship with doctors, who can refer their patients to the service to make sure the patients stay in-network with the new plans they find.
“Keen’s healthcare provider relationships and strong partnerships perfectly complement Connie’s personalized, tech-driven support. This acquisition positions us as a leading force in the Medicare navigation market,” Khosla Ventures managing director Samir Kaul told Endpoints over email.
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