Medefy Health Raises $10M Series A Funding For Tech Platform

Medefy Health, a healthcare coverage navigation network that runs on mobile devices and is committed to enhancing the employee health benefits experience by providing real-time guidance, made the announcement today that it has successfully raised $10 million in Series A funding, with Mercury Fund serving as the lead investor and Advantage Capital also participating.

Medefy will also utilize the funds to strengthen its workforce. Matt Scovil, who founded the company in 2018 with his cousin Nathan Gilchrist, stated, “We will be pouring a lot into product development. We have such a low churn rate our employers are asking for more and more from the platform, more features, more tools, the market wants more features and tools. That’s going to require more engineers, more product people, more sales and marketing.”

Medefy’s centralized platform, which was launched with the purpose of streamlining how employees connect with their insurance plan, assists employees in identifying the highest quality treatment at a reasonable cost by providing them with tailored and proactive counsel. 

In order to help members of health plans actively schedule excellent quality, high-value medical services with a mean initial response time of less than a minute, the chat-based system engages health plan participants through multiple channels of communication. It then links them with its team of real human healthcare guides and benefits experts who are available around the clock. 

This service has typically been concealed behind undependable phone support lines. Additionally, the platform consolidates the whole health plan of the organization into one mobile experience, which encourages members to make more use of additional suppliers, perks, and programs than they would otherwise.

At the moment, Medefy provides its services to a sizeable clientele consisting of more than 1,500 companies and their members are located all across the U.S. These employers include self-insured businesses, insurance agents, benefits experts, TPAs, and enterprise groupings. 

The firm was recently ranked #288 on the highly regarded Inc. 5000 list of the most rapidly expanding private companies in the country. Additionally, it was honored with the Oklahoma Venture Forum’s Venture of the Year Award in 2022. Furthermore, it has received a tremendous amount of positive feedback from customers in the App Stores as well as across Medefy’s internal-app and white label evaluations, with an average rating of 4.9.

Medefy’s rapid expansion has been in line with an overall trend across the nation in the direction of more transparent healthcare laws. This shift has a particular emphasis on bringing about greater transparency through the Transparency in Coverage Rule, which mandates that the majority of group health plans and health insurance lenders offer readily available pricing details online about the products and services they provide. 

Through the use of improved cost estimates, Medefy is trying to assist enterprises in finding solutions to this new demand.

Gilchrist expressed anticipation for team expansion and the ongoing scaling of their current services into emerging high-cost healthcare areas, such as the escalating expenses related to prescription drugs. He highlighted that the fundraising efforts would enable Medefy to extend its reach to a greater number of employees seeking assistance, cater to more employers aiming for cost reductions, and enhance the quality of support provided to both groups.