Self-Funded Health Insurance Company Sana Benefits Secures $20.8 Million

By Annie Baker ● September 14, 2020
  • Sana Benefits — a provider of self-funded health insurance for small businesses — announced that it has closed $20.8 million in Series A funding led by Gigafund

Sana Benefits — a provider of self-funded health insurance for small businesses — announced that it has closed $20.8 million in Series A funding led by Gigafund. And additional investors in the round include Trust Ventures and mark vc.

With this round of funding, Sana Benefits plans to scale customer acquisition and provide better benefits at low costs.

The company has a goal to save the 50% of Americans who rely on employer benefits from high prices by the largest insurance companies. These carriers enjoy monopolies in many markets, resulting in higher healthcare costs for consumers.

Sana Benefits’ membership has grown 10 times in the past year, which indicates a strong demand for its self-funded plans and fair-market insurance pricing. And the company’s services — which is currently available in Texas and Kentucky — will expand into additional markets by 2021.

Sana Benefits plans abolish healthcare network restrictions and out-of-network fees. And it will include health, vision, dental, free telemedicine, maternity care, a ClassPass for fitness classes, etc.

For the small businesses that employ nearly 60 million members of the U.S. workforce, Sana Benefits will not only provide affordable and easy to use insurance, but drive healthcare improvements nationwide.

KEY QUOTES:

“Our vision has always been to replace the current broken healthcare system with one that is incentivized to deliver better outcomes at lower costs. We’ve seen our current offering start to do just that for small businesses in the Texas market. This capital enables us to quickly bring that offering to even more employers, in turn allowing us to make the product even better.”

— Sana Benefits CEO and co-founder Will Young

“Sana’s disruptive model for health insurance empowers small businesses to both cut costs and improve employee benefits. We believe that only a win-win solution like Sana can make a real dent in the healthcare crisis.”

— Stephen Oskoui, Managing Partner of Gigafund

“Small businesses are the lifeblood of the U.S. economy. They are the bedrock on which innovation, hiring and new jobs rest. By cutting small businesses’ most pernicious and unreasonable expenses, Sana Benefits is not only helping to fix healthcare but enabling the economy to get back on its feet.”

— Salen Churi, General Partner of Trust Ventures