Charta Health, an AI-powered medical chart review platform focused on healthcare billing accuracy, has raised $55 million in a Series B funding round led by Insight Partners. Existing investors Madrona, Bain Capital Ventures and South Park Commons also participated, alongside QuantumLight.
The funding will support Charta’s AI research and development and the launch of two dedicated business offerings: Charta for Providers and Charta for Payers. Both products use the same AI engine but serve different parts of the healthcare payment system, including healthcare providers and insurance companies.
“We came to healthcare as engineers and saw a system where the most important data was locked in documents no one had time to read,” said Justin Liu, CEO and co-founder of Charta Health. “Charta unlocks that data. When every chart gets reviewed, accuracy stops being a guess. Payers and providers should agree on the chart before a claim goes out, not fight about it after. That’s how we end the costly cycle of denials and appeals, and put billions of dollars back into patient care.”
Addressing Billing Errors, Denials and Appeals with AI
Charta aims to improve accuracy in healthcare payments by helping providers and insurers work from consistent medical coding standards.
A 2025 study estimated that claims adjudication cost U.S. hospitals and health systems more than $25 billion in 2023. Nearly $18 billion of that amount was potentially wasted on denials and appeals.
The problem is becoming more complicated as healthcare providers and insurers increasingly adopt AI tools that can generate additional claims disputes, denials and appeals. These processes add costs across the healthcare system, which can ultimately affect taxpayers and consumers.
Charta takes a different approach by reviewing medical records before claims are submitted. Its AI examines clinical documentation like an experienced medical coder and auditor, identifying missing diagnosis codes supported by the records and removing codes that lack sufficient documentation.
The goal is to reduce disagreements between insurers and providers by applying a shared standard of accuracy before a claim enters the payment process.
Charta for Payers: Six AI-Powered Products
The funding announcement includes the launch of Charta for Payers, a suite of six AI-powered products developed for health insurance companies.
Designed in partnership with one of the largest health insurers in the United States, the offering includes:
- Retrospective HCC coding
- AI-automated second-pass coding
- Smart coding platform
- Prospective risk adjustment intelligence
- HCC validation and audit workflow
- HEDIS and quality care gap detection
These tools are designed to help health plans improve diagnosis coding, risk adjustment, auditing and quality improvement.
The products also support insurers participating in government-funded healthcare programs, including Medicare Advantage and ACA Marketplace plans. Accuracy and compliance in these programs are important as regulators focus on reducing waste, fraud and abuse in healthcare.
Charta for Providers: Improving Claims Before Submission
The Charta for Providers program examines medical records prior to submission of their claims to payers. It crosschecks the patient’s records with appropriate coding regulations, insurance companies’ prerequisites and the hospital’s own treatment standard charter.
The conclusions by the program can then be viewed by the human specialists via the patient’s electronic medical record. This made it much easier for the hospitals to discover any mistakes related to coding beforehand so that they could prevent insurance claim denials.
Charta already works with major U.S. healthcare organizations, including American Family Care, Grow Therapy and Pediatric Associates Family of Companies. The new funding will help the company expand its provider offering into additional medical specialties.
Founders and Company Growth
Charta Health was founded by CEO Justin Liu and CTO Scott Morris, who previously worked at Rockset, a real-time AI data company that became OpenAI’s first product acquisition.
Before launching Charta, the founders spent a year earning Certified Professional Coder credentials and interviewing more than 100 healthcare leaders to understand medical billing and coding challenges.
The company also requires its engineering and growth teams to obtain medical coding certifications, helping them understand the healthcare workflows their technology supports.
Charta says its revenue grew 10 times over the past 12 months. The company has also raised three funding rounds in less than two years as investor interest has grown alongside its business.
With its latest $55 million Series B, Charta plans to develop its AI technology further and expand its products across both sides of healthcare payments.
