Capital Rx, a company specializing in health technology and benefits administration, has announced a substantial $400 million investment. This includes a $252 million Series F funding round, along with additional investments in the company’s securities, all of which are expected to be finalized in early October. The funding round was led by prominent firms Wellington Management and General Catalyst, with significant contributions from Generation Investment Management, Growth Equity at Goldman Sachs Alternatives, 9Yards Capital, B Capital, Edison Partners, Prime Health Investments, and Transformation Capital, and others.
Alongside this significant financial boost, the company is undergoing a strategic rebrand, changing its name to Judi Health. This new identity is intended to reflect its core mission more accurately and expanded capabilities as a comprehensive health benefits technology provider. Judi Health aims to empower employers in designing and managing health benefit programs that are specifically tailored to their diverse and evolving needs.
This transition to Judi Health, along with the substantial funding it has secured, has arrived at a critical juncture for addressing deep-seated inefficiencies within health benefits administration and the ever-increasing cost of healthcare in the United States. Projections indicate that healthcare costs are set to surge by almost 9% in 2026, marking the most significant increase in over a decade. Despite this drastic escalation in expenditures, the health outcomes for Americans are, regrettably, declining. A significant contributing factor to this challenge is the difficulty patients face in understanding the actual costs associated with their healthcare visits, prescriptions, and medical procedures. This lack of transparency frequently leads to delays or even the deferral of necessary care, potentially impacting life-saving treatments.
The highly successful and oversubscribed financing round will enable the company to significantly expand its pharmacy benefit management, or PBM, operations. Furthermore, it will fuel the widespread deployment of Judi Health’s innovative Enterprise Health Platform, or EHP. This platform is designed to deliver a comprehensive suite of health benefits services directly to employers, addressing their evolving needs with clarity and flexibility through various integrated brands.
Among these brands, Capital Rx will continue its operations as a leading, transparent PBM in the industry. It is widely recognized for its flat-fee-based and aligned pricing model, its member-centric approach to service, and its commitment to operational efficiency. Judi Health will serve as the company’s full-service health benefit management platform itself. This platform integrates a unified approach to care navigation through Judi Care, encompassing pharmacy, medical, vision, and dental benefits. It also streamlines claim administration and related workflows, providing employers and plan members with a single, easy-to-use solution for managing all their health benefits. Lastly, Judi, an abbreviation for adjudication, is the company’s specially designed EHP. Judi efficiently manages administrative workflows for millions of plan members, including those from Fortune 500 companies, some of America’s largest unions, prominent health systems, Medicare and Medicaid plans, and top academic institutions.
Judi Health was established in late 2017 by Chief Executive Officer AJ Loiacono and Chief Technology Officer Ryan Kelly. Since its inception, the company has garnered national recognition for its advancements in technology and its fair pricing model within pharmacy benefit management, a foundation upon which it will continue to build and expand. With a robust customer base that includes more than 4 million employer PBM members and over 54 million health plan lives already committed to utilizing the Judi platform, which was developed from the ground up, the company is now poised to enter the broader health benefits market as a true innovator and leader, backed by extensive experience, a proven infrastructure, and a loyal customer base.
KEY QUOTES:
“Judi Health is rewriting the playbook for how benefits are delivered. By combining a transparent PBM model with a scalable, AI-powered platform, they’re building the infrastructure for the next generation of health benefit administration. Employers are demanding better solutions, and Judi Health is uniquely positioned to meet that moment.”
Joshua Sommerfeld, Healthcare Sector Lead at Wellington Management
“With Judi, Capital Rx has built a platform that not only meets the needs of today’s employers and health plans, but is engineered to adapt and grow with them. We believe their leadership in transparent PBM and their vision to unify pharmacy and medical benefits represent a transformative shift in healthcare administration, and we look forward to deepening our relationship.”
Holly Maloney, Managing Director at General Catalyst
“We believe that Judi Health is building the foundational infrastructure for a more transparent U.S. healthcare system. For as long as health benefits remain obscured by misaligned incentives and legacy technology, patients will continue to suffer, whether at pharmacy counters or hospital beds. Today, as Judi Health expands from pharmacy into unified claims and full benefit administration, we see it reaching a critical inflection point — and we are pleased to partner with them at this moment of acceleration.”
Jonah Surkes, Director at Generation Investment Management
“We’ve seen unprecedented demand for Capital Rx, our transparent pharmacy benefit offering, and with the introduction of Judi Health, we are able to help our customers also administrate medical, dental, and vision benefits on a single platform. The U.S. healthcare ecosystem has far too many ‘rent seekers’ inflating costs, hiding fees, and delivering substandard care due to a combination of misalignment and a reliance on antiquated technology. Judi Health is not just the promise of better care; it is the technology that powers the future of U.S. healthcare.”
AJ Loiacono
