Nara Health, an AI-native third-party administrator (TPA) for health insurance, has raised $14 million in total funding across pre-seed and seed rounds.
The funding was led by Khosla Ventures, with participation from Long Journey Ventures, Superior Studios and other investors and angel investors.
Founded by Sidhartha Sinha, Nara Health is building an AI-powered platform designed to make health insurance simpler for employers and employees while reducing healthcare costs.
“I’ve seen healthcare from every angle, from designing hospitals and care delivery models to building AI products for hospital systems and insurers, and from my wife’s perspective as a hospitalist. What I’ve witnessed time and time again is that our care has been limited by our coverage – that should never be the case,” said Sidhartha Sinha, co-founder and CEO of Nara Health. “Nara Health was born to solve coverage and care together. By bringing benefits administration, claims processing, care orchestration, and member support into a single intelligent platform, Nara Health helps employers lower healthcare costs while making it dramatically easier for employees to access and use their benefits.”
The company combines benefits administration, claims processing, care coordination, and member support on one platform. Its technology uses data from medical claims, prescriptions, electronic medical records, and member interactions to help people find the right care and manage their benefits.
“We wanted a scrappy, tech-forward TPA partner that could handle something new while nailing the fundamentals,” said Matt Brow, CEO, Advanced Medical Pricing Solutions. “That’s exactly what we found in Nara Health. After a 27% renewal increase on our level-funded plan, we made the leap to self-insurance, and eight months in, our benefits costs are down 55% year-over-year, while our members are getting a better experience. Nara Health’s care coordination has been key to getting our members to the right care faster.”
Nara Health currently serves more than 25,000 members and has processed over $600 million in claims. The company says some employer health plans have reduced healthcare costs by more than 50% compared with their previous plans.
“Employer health plans have absorbed decades of cost increases with no real mechanism to push back on the underlying pricing,” said Samir Kaul, Founding Partner and Managing Director at Khosla Ventures. “Sid and his team have the clinical chops to know exactly where those dollars are getting wasted, and the technical depth to actually rebuild the systems that decide how they’re spent. That combination is rare – most teams have one or the other. Nara Health has both.”
The platform also provides faster member support, with calls answered in an average of 5 seconds and prior authorization processed on the same day, compared with the industry standard of three to five days.
Nara Health will use the new funding to expand its AI-powered health insurance platform and continue helping employers lower costs while improving the healthcare experience for employees.
