The UpTake: Abir Sen's startup is geared to getting customers the best health insurance deal, and he has some well-heeled backers.
Serial health care entrepreneur Abir Sen has launched a startup that aims to be the Charles Schwab of health insurance. And he's attracted some well-heeled investors who want to bet on his vision.
Sen's Minneapolis-based company, Gravie, lets consumers shop and pay for health insurance coverage online. Users don’t have to scour both the private market and public exchanges like Minnesota's MNsure for the ideal plan. Instead, Gravie will pick the best option from either marketplace, in much the same way a securities firm buys shares of a specific stock through either the New York Stock Exchange or Nasdaq, Sen told me in an interview Monday.
Gravie recently raised $2.6 million in venture capital in a round led by FirstMark Capital, a New York firm that has backed well-known tech tech startups like Pinterest and StubHub. The company expects to employ about 20 people by the end of the year, Sen said.
Gravie users fill out an online questionnaire and the company uses the answers to pick the best plan for them. (Consumers also can call and speak with a broker.)
Gravie's website features a PayPal-like component that allows people to pay for coverage from sources like health-savings and flexible-spending accounts when appropriate.
Overall, the company aims to serve consumers in much the same way employer-focused brokers now serve businesses, Sen said.
“Think of us as the next-generation individual [market] broker. It’s one place to manage all of your health care affairs.”
Gravie doesn’t charge consumers for its services. It makes money in the same way a traditional insurance broker would, though commissions and distribution fees.
The startup aims to distinguish itself from competitors, such as eHealthInsurance, by offering ongoing support services to members. For instance, if an insurance company mysteriously denies a claim, users can seek Gravie’s advice on how to handle it, Sen said.
Eventually, Gravie plans to also let people pay doctor’s bills through its website, though that feature isn't available yet, Sen said.
The company has deals in place with most major carriers in Minnesota, where it will launch before expanding to other parts of the country.
Sen doesn’t view Gravie as a direct competitor to public exchanges. Instead, it’s a complementary service that will be useful to people who want to easily choose from both public-exchange and private-market products. Sen expects the private market will offer more options than consumers could find on the public exchanges alone.
Gravie will pitch its service to individuals, as well as companies phasing out employer-sponsored coverage.
Sen previously co-founded Definity Health, which was sold to UnitedHealth Group Inc. for $300 million; venture-backed wellness-tech firm RedBrick Health Corp.; and Bloom Health, which was acquired by three insurance companies in 2011.
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