Boston-based AI health insurance company Cohere Health has raised a new round of $50 million in equity financing.
The firm will use the funding to scale to meet demand, according to a news release from Cohere. It currently serves 5 health plans, annually processing prior authorizations for 15 million patients and 420,000 healthcare providers.
Cohere’s technology uses AI to create prior authorizations in the health insurance process. Health plans often require prior authorization before a plan member can receive a service or fill a prescription. It can slow down the treatment process and contributes to administrative burden.
According to the company, its platform reduces prior authorization denials and gets patients access to care five days faster than they otherwise would.
In January, the Centers for Medicare and & Medicaid services finalized a rule requiring advancements in applications used for prior authorization to improve and quicken the process. Cohere is positioning itself as a solution for health plans needing to implement new technology.
Cohere was founded in 2019 by Duncan Reece and Siva Namasivayam. In 2020, it has single-digit employees, and now employs over 700, according to the news release.
The company has so far raised $106 million. This funding round was led by Deerfield Management, with participation from Define Ventures, Flare Capital Partners, Longitude Capital, and Polaris Partners.
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