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An Indianapolis-based insurance technology company has raised more than $100 million in growth funding from a pair of venture capital firms.
Austin Lehman, CEO of Remodel Health, said the deal is “massive” for the company and for the state, as it helps the firm position itself to double its workforce over the next five years and pursue new partnerships.
“We want to acquire a business a year, along with organically growing in the market,” Lehman said. “We think that there’s companies out there to acquire that we can grow with as well, so it it will be both of those—a two-pronged approach.”
The company currently has 160 employees, including 120 in Indianapolis—up from about 75 a year ago. In February, 32 new employees joined the company when it acquired Salt Lake City-based PeopleKeep, allowing it to expand its reach to serve smaller businesses and organizations.
Connecticut-based OAK HC/FT and California firm Hercules Capital Inc. provided the growth funding. The deal was announced Thursday.
Founded in 2015 by Justin Clements and Scott Lingle, Remodel Health has appeared on IBJ’s Fast 25 list of fastest-growing private companies in 2021, 2022 and 2024. It placed 13th on the list this year, reporting $14.8 million in revenue for 2023—a 122.8% increase from 2021.
The firm offers a software platform and health benefits experts to help employers reduce their health care costs by shifting from group health insurance to a system in which each employee has an individual plan.
Federal legislation that went into effect in 2020 created the individual coverage health reimbursement arrangement, or ICHRA, which allows employers to reimburse their employees for some or all of the cost of health insurance premiums for policies the employees buy on their own.
Remodel Health says it supports employers and employees with everything they need to launch and access their ICHRA plans, including plan creation and administration, call center support, automated quoting and employee onboarding.
The influx of venture capital is intended specifically to aid Remodel Health as it continues its expansion in the ICHRA market.
“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,” said Andrew Adams, co-founder and managing partner of Oak HC/FT, in a media release.
Churches and Christian schools were among the company’s earliest customers, although today Remodel Health also serves businesses, nonprofit organizations, and insurance brokers and agents.
In July, Remodel Health moved its headquarters to the Union 601 building at 601 S. Meridian St., occupying about 20,000 square feet of space and putting its name on the building. The company previously operated at 525 S. Meridian St., where it used about 10,000 square feet.
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