Gravie is one of the fastest-growing health benefits companies, offering health plans that cover 100% of costs on the most common healthcare services. The company works primarily with small and midsize employers, who for too long have had limited choices and few ways to self-fund their employee health plans. Pulse 2.0 interviewed Gravie senior vice president and general manager of Gravie ICHRA Andrew Reeves to learn more about the company.
Andrew Reeves’s Background
Reeves joined Gravie in 2023 as the company’s first general manager of Gravie’s ICHRA offering. And Reeves said:
“I spent my career bringing healthcare solutions to bear and bring a strong business acumen to my role at Gravie. Previously, I was the chief revenue officer for digital wellness company Virgin Pulse, where I led the global commercial team through several key milestones including a significant merger and realignment of how they served their key market.”
“I also held senior leadership positions including chief commercial officer for BioIQ, a population health and testing platform company, that grew over ten times during an unprecedented economic time in the United States, under my leadership. This led to a successful acquisition in 2021.”
“Notably before that, I held a 12-year tenure with Cigna Health Group that, among other roles, included launching and growing Cigna’s Medicare Advantage business from the ground up in several markets across the Southeast. In this role, I sat directly across the table from countless Medicare members to hear their experiences firsthand. I received his bachelor’s degree from Florida State University. “
“I joined Gravie in 2023 as the company’s first general manager of Gravie’s Individual Coverage Health Reimbursement Arrangements (ICHRA) solution.”
“An ICHRA allows employers to make tax-advantaged contributions to employees who enroll in a health plan through the individual marketplace. Since becoming available to employers in January 2020, ICHRAs have seen a surge in adoption – our own Gravie ICHRA offering included.”
“My role focuses on optimizing Gravie ICHRA, while improving the user experience for employers, employees, and broker partners. This includes driving awareness and expansion of Gravie ICHRA into key markets across the country.”
Favorite Memory
What has been Reeves’ favorite memory working for the company so far? Reeves shared:
“In my short time with Gravie, my favorite experience so far has been talking with current clients who are on our ICHRA platform. It’s clear they care deeply about offering quality benefits to their employees, not just fulfilling a requirement. Talking with them face-to-face and understanding their specific needs, what they have found beneficial through Gravie ICHRA and what they would like to see in the future, has been very rewarding.”
Core Products
What are the company’s core products and features? Reeves explained:
“Gravie’s mission is to build a health plan everyone can love, offering innovative benefit solutions for every size business. That distinction is important to us. The health benefits industry has a sub-par reputation among members and employers alike. The complexity of the industry, the hoops that people have to jump through, and the ever-rising costs are examples of some of the biggest barriers facing employers and individuals. We’re changing those narratives with solutions that remove those barriers and encourage people to seek the care they need.”
“In addition to Gravie ICHRA, Gravie offers its flagship health plan, called Comfort. This first-of-its-kind health plan provides zero-cost coverage on 85% of the most common healthcare services – including preventive care, primary care, specialist visits, labs and imaging, generic prescriptions, online care and more, with savings opportunities for both employers and employees.”
“This plan design makes up the foundation, or “chassis” as we call it, to our overall Gravie platform that provides a rich benefits experience for employers and employees. For example, with Gravie Care, our customers have a team of dedicated advisors available to help members navigate their plans and answer questions throughout the year. Gravie Pay, our interest-free payment program, is another example of how we’re helping to ease financial burdens for members. Gravie Pay lets members pay over time for out-of-pocket medical expenses, whether planned or unexpected.”
Challenges Faced
What challenges has Reeves faced in his line of work? Reeves acknowledged:
“For ICHRA specifically, despite their growing popularity, awareness of the offering is still relatively low. This knowledge gap presents additional opportunities for education and growth, since many employers are looking for a range of health benefits solutions to meet the unique needs of their employee populations. Gravie’s recent research found:
Gaps in awareness and plan coverage
— 49% of benefits decision-makers surveyed had never heard of ICHRA
— 37% of employers surveyed offer group health plans to all employees, while 34% offer HRAs of some kind to employees. For those whose health benefits don’t cover all employees, gaps in coverage exist for many depending on their role, seniority or hours of service.
Barriers to adoption
Benefits decision-makers have demanding jobs and, in many cases, wear multiple hats. Most in these roles rely on information and support from their brokers and outside administrative partners. Over 80% of respondents cited the following barriers to offering an ICHRA:
— Finding time and resources to look or change health benefit options: 84%
— Concerns over staying compliant and up to date on regulation changes: 83%
— Managing employee contribution strategies: 82%
— Providing ongoing support as individual employee questions arise: 81%
Seventy-six percent of respondents who are considering a transition from an employer-sponsored group plan to an individual market offering noted they have a lot of unanswered questions about ICHRA, and 4 in 5 would be more likely to offer an ICHRA if another company or vendor managed it for them and provided dedicated support.”
Evolution Of Gravie’s Technology
How has the company’s technology evolved since launching? Reeves noted:
“As Gravie has grown, our partnerships have helped evolve our technology capabilities. We’ve worked hard to ensure our members have a positive, digital-first customer experience and that’s been nurtured by partnerships with IDEON and USEO for seamless payments and a best-in-class user experience.”
“We’ve also built out a suite of virtual services for our members to help them manage their health better. These solutions were handpicked based on claims data showing the most pressing clinical needs for members, and which solutions have the biggest impact.”
“They include Sword, a clinical-grade digital solution that helps members overcome back, joint and muscle pain; Teladoc Health, the world leader in whole-person virtual care; and FitOn Health, an app-based fitness program. All of these technologies have historically been out of reach for many employers, especially small and medium-sized businesses, but Gravie continues to prioritize members getting care early and often – both to the benefit of the member and the pocketbook of the employer. “
“Our Gravie Care team frequently interacts with members to provide individual, personal support that dovetails with and enhances their digital user experience.”
Significant Milestones
What have been some of the company’s most significant milestones? Reeves cited:
“1.) 2013: Gravie is founded by Abir Sen, chairman and CEO, and Marek Ciolko, president and COO, as an online marketplace designed to help individuals and employers more easily compare health plans on the private market and public exchange.
2.) 2014-2017: Gravie closes Series A, B and C funding rounds with investors such as Aberdare Ventures, Split Rock Partners and FirstMark Capital, bringing the total raised since its founding to $44 million.
3.) 2019: New legislation paves the way for employers to offer ICHRA, which favorably positions Gravie’s ICHRA solution, given its long leadership and expertise in the individual market.
4.) 2020: Gravie launches Comfort®, the nation’s first-of-its-kind health plan that provides first-dollar, 100% coverage on most common healthcare services.
5.) 2021: Gravie launches GraviePay®, an interest-free, pay-over-time option members can use to pay for medical expenses that are subject to their out-of-pocket responsibility.
6.) 2022: Gravie closes its largest rounds of funding in the company’s history – $90 million in a Series E round of financing led by Georgian and a $179 million equity investment from General Atlantic.
7.) 2022: Gravie renovates and moves into a 27,000-square-foot building in Northeast Minneapolis to accommodate their employee base tripling in two years.”
Customer Success Stories
After asking Reeves about customer success stories, he highlighted:
“Both Gravie Comfort and Gravie ICHRA are delivering what they promise. With Comfort, employer clients average a 15% reduction in premiums compared to prior carrier renewals, while at the same time boosting utilization of the most common services that keep people healthy, thereby reducing the need for invasive, high-cost services down the road.”
“The savings also extend to employees with the Comfort plan, who spend 20% less on claims and 61% less in out-of-pocket expenses compared to coworkers on traditional copay or HSA plans. Plus, with copays and deductibles eliminated on most common services, plan members are averaging five zero-cost medical visits per year compared to the industry average of 2.8 zero-cost visits per year.”
“Similarly, ICHRA is creating opportunities for employers to provide competitive health benefits to segments or entire populations of employees who may not be an ideal fit for a traditional group plan.”
“First, our defined contribution strategy ensures that employers will be successful at controlling costs, as they are able to define how much they want to contribute to each employee’s individual coverage. Our hands on approach also provides much-needed compliance support for employers in an industry that’s been riddled with red tape and complicated processes for decades.”
Funding
When asking Reeves about funding information, he revealed:
“Gravie is one of the fastest-growing health benefits companies in the country, closing on $90 million in a Series E round of financing in 2022 and, most recently, securing a $179 million equity investment from General Atlantic, along with investors FirstMark Capital and AXA Venture Partners.”
“Gravie grew its revenue more than tenfold from 2021-2023 and more than tripled its employee base in the past two years.”
Differentiation From The Competition
What differentiates the company from its competition? Reeves affirmed:
“Health benefits have been riddled with red tape and complicated processes for decades at the expense of employers and members. Gravie offers solutions that provide real value to members with controlled costs for employers.”
“With our own health plan, we’re removing things like copays and deductibles providing more coverage on the services that members need most without the hidden catches, complicated jargon or unexpected costs.”
“For solutions like ICHRA, we’re supporting employers and employees in a way no one else is to alleviate the headaches and burdens typically associated with administering health benefits.”
Future Company Goals
What are some of the company’s future company goals? Reeves pointed out:
“Providing a better health benefits experience for employers and employees will always be our focus. Solutions like ICHRA, Comfort, GraviePay and Gravie Care help employer clients stay competitive in the market and satisfy diverse employee populations while managing their risk and their investments wisely. With an ear to the ground and deepened relationships with our broker partners, employer clients and members, and continued innovation in the industry, we can help break down the barriers that have plagued the industry for so long.”
