A Minneapolis digital healthcare startup that offers consumers the ability to add “just in time” healthcare coverage when they need it has raised $60 million in new working capital.
Bind Benefits Inc. has raised the money from Minneapolis venture capital firm Lemhi Ventures, which primarily funds new healthcare startups. Bind Benefits, which was founded in 2016 by entrepreneur Tony Miller, the former CEO of health benefits firm Definity Health, has raised all its funding to date from Lemhi Ventures. In July 2016, Lemhi invested $2.5 million to help get the company started, the venture capital firm says.
Bind Benefits will use the funds for general business development and add 20 more employees to its current base of about 50 workers, the company says. The company has yet to name any companies it has signed up as customers so far, if any, or how many consumers and healthcare providers are using its health plan technology. The company’s primary customers are employers that run their own self-insured health plans.
The premise of the company is to let health plan members use the Bind Benefits Apple and Google app to buy health insurance for a specific health condition only when they need it, the company says.
Traditional employer healthcare insurance plans give plan members access to a set number of benefits that are covered by the employer’s major medical, dental, vision and behavioral health policy. Employees have deductibles, co-payments and premiums they pay as part of being on their employer’s health plan, Bind Benefits says.
But not all plan members use all their benefits all the time even though they pay for the coverage, Bind Benefit says.
Bind Benefits offers plan members established core coverage for major medical expenses and preventative care with options to purchase other coverage when they need to outside of traditional benefits enrollment time frames, the company says.
“Unlike traditional health insurance plans that charge for services people may never need or want, Bind allows our members to pay for what they need—not what they don’t—and adjust their coverage when their needs change,” Miller says.
A Bind healthcare plan includes preventive, primary, specialty, chronic, urgent, emergency and hospital care and prescriptions. But with the Bind Benefits app consumers who may need to add services from a vision or mental health provider can use the app to shop for coverage, see premiums, co-pays and deductibles and find a provider covered by the employer’s self-insured plan.
“If you are considering surgery, the Bind app helps you understand all your options and lets you know of physician groups who offer lower pricing or less invasive treatment options,” Miller says.
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