HealthCare.com, a private online marketplace for insurance founded in 2006, announced it closed a Series A funding (preferred stock sold to investors, usually the first series of stock after common stock is issued) round of $7.5 million. The funding was led by Priceline and Miami-based People Fund.
The funds will be used to expand HealthCare.com’s product offerings, invest in new technology, and increase the team. Joe Vargas, cofounder of HealthCare.com, says that the site’s insurance comparison tool allows people to compare 75,000 state and federal exchange plans, as well as off-exchange plans. However, the site will not include subsidies that are available through Healthcare.gov. In the future, the company plans to add comparison tools for Medicare and dental insurance.
Jeffrey Boyd, current chairman and former CEO of Priceline Group, and Robert Mylod, Priceline’s former vice chairman and CFO, joined the board of HealthCare.com. Vargas is excited to have both executives on the board because they have a substantial understanding of how to brand Internet companies and make them consumer brands.
Jeff Smedsrud, CEO of HealthCare.com, says that the site has had and average of 1 million visitors each month for the past year. Smedsrud and Vargas expect this number to significantly increase with the government’s open enrollment beginning November 15th.
Summary by MedicalGroups.com
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