Nara Health has raised $14 million across pre-seed and seed financing led by Khosla Ventures to expand its AI-native health benefits administration platform, which has already processed more than $600 million in medical claims for over 25,000 members. Long Journey Ventures and Superior Studios participated alongside other investors and angel investors.
The Chicago-based company is rebuilding the traditional third-party administrator model around AI, alternative health plan designs and integrated care coordination.
Nara combines benefits administration, claims processing, care orchestration and member support on a single technology platform.
The company works with employers that self-fund or use alternative health plan structures, including direct provider contracts, cash-pay arrangements, reference-based pricing and direct primary care.
Nara said alternative plan designs can reduce employer healthcare spending by 15% or more.
The company’s platform has more than 25,000 members and has processed more than $600 million of claims.
Nara also said some employer health plans using its platform have cut costs by more than 50% compared with the employer’s previous-year plan.
On the member-service side, Nara said calls are answered in an average of five seconds and prior authorizations can be processed the same day, compared with what it described as a typical industry timeline of three to five days.
Nara’s agentic care coordination platform combines real-time and historical information including medical claims, prescription data, electronic medical records and member interactions across calls, text messages and email.
That information can be used to help members find care while giving the platform a more current view than traditional administrators that may rely on claims data reflecting care delivered weeks earlier.
The company describes its role as an “air traffic control” layer for health plans, coordinating how people access care and how that care is paid for.
Nara was founded by Sidhartha Sinha, who has experience designing healthcare delivery models and developing AI products for hospitals and insurers.
The new capital will support continued product and organizational expansion as employers search for ways to control health benefit costs while improving employee access to care.
KEY QUOTES:
“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.”
Sidhartha Sinha, Co-Founder and CEO of 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.”
Matt Brow, CEO of Advanced Medical Pricing Solutions
“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.”
Samir Kaul, Founding Partner and Managing Director at Khosla Ventures
