Remodel Health, an Individual Coverage Health Reimbursement Arrangement (ICHRA) provider for brokers, announced it had raised over $100 million from Oak HC/FT and Hercules Capital in growth funding. And Remodel offers an end-to-end white-labeled tech platform that supports employers and employees with everything they need for launching and accessing their ICHRA plans, including plan creation and administration, call center support, automated quoting, employee onboarding, HRIS integrations and payments with carriers and access to ancillary products.
Starting with the group-to-individual health insurance shift in 2015, Remodel has become a major player in the ICHRA space, bolstered by the acquisition of PeopleKeep in early 2024. The two companies are uniquely positioned to serve small, medium, and large employers with a suite of products across ICHRA and QSEHRA. With this investment from Oak HC/FT and Hercules Capital, Remodel will look to continue its national expansion.
Remodel stands apart from the competitive set with its meaningful scale and a go-to-market motion defined by its deep broker relationships and easy-to-understand approach to marketing and sales. As employer health insurance premiums continue to increase, ICHRA offers Remodel’s customers predictable annual benefits costs, driving stability and an average of 30% savings for the office of the CFO.
Over the past year, Remodel has focused more on partnering with insurance brokers and agencies to support its ICHRA expansion across the U.S. So the Remodel business grew 11x year-over-year in broker-led ICHRA bookings, and this will be a key area of growth and expansion for the company moving forward.
ICHRA was launched in 2020 as a flexible alternative to traditional group health insurance, providing choices around contribution levels to employers and more personalized options around employee benefits. Similar to a 401K, employers of any size can give their employees an allowance of pre-tax dollars. Employees use this to purchase some or all of their healthcare premiums for insurance bought on the ACA exchanges. It offers an exciting cost-savings proposition for minimal and mid-size employers who want to provide health insurance to their teams by allowing them to move their employees to state risk pools to help offset costs instead of trying to level-fund or self-insure.
KEY QUOTES:
“We are on a mission to resource organizations with missions that matter, partnering with employers and their brokers to do so. Remodel Co-Founders Justin Clements and Scott Lingle and I started trailblazing in 2015, and PeopleKeep founder Paul Zane Pilzer identified this shift like pension to 401(k) in the early 2000’s. We are now seeing it begin to come to fruition. The Oak team have been great dreamers with us and have great connections in the insurance payer space to accelerate growth and help increase access to medical care and resource organizations with missions that matter.”
- Austin Lehman, CEO of Remodel Health
“We have been looking at the ICHRA space for a few years now, waiting for a stand out company with the combination of hyper-scaling potential, an ambitious go-to-market strategy and focused dedication from the leadership team. We are honored that the Remodel team chose to partner with us and cannot wait to support them in their efforts to build out the ICHRA market for employers and brokers across the U.S.”
- Andrew Adams, Co-Founder and Managing Partner, Oak HC/FT
