In the United States, millions of Americans struggle to navigate the complex healthcare system, leaving their benefits underutilized due to confusion and a lack of clear information. The employer-sponsored healthcare market touches over 150 million Americans and accounts for more than $1.3T in annual healthcare spend, yet many employees cannot make informed decisions about their health benefits. Healthee improves this landscape with an AI-powered platform that helps employees navigate their health benefits with confidence and ease. Their virtual AI assistant Zoe, available 24/7, delivers personalized guidance for every stage of the healthcare journey, from plan selection to appointment booking, telehealth to cost transparency, empowering over 15,000 companies to become better healthcare consumers. Healthee’s platform delivers real results: HR teams save an average of nine hours weekly on benefits-related tasks, companies experience an 87% reduction in HR administrative workload, and employees save $1-2K in out-of-pocket costs while 95% choose the recommended best-match plans.
AlleyWatch sat down with Healthee VP of Finance Michael Rosen to learn more about the business, its future plans, and recent funding Series B round.
Who were your investors and how much did you raise?
Healthee just closed a $50M ($30M equity, $20M debt) Series B round, bringing our total funding to $109.5M to date. We’re backed by a group of mission-aligned investors who are passionate about transforming employee health benefits through technology, including Key1 Capital (the lead investor for this B round), Glilot Capital Partners, Group 11, and Fin Capital.
Tell us about the product or service that Healthee offers.
Healthee is an AI-powered platform that helps employees navigate their health benefits with confidence and ease. From plan selection to appointment booking, telehealth to cost transparency, our platform empowers over 15,000 companies to become better healthcare consumers. Our AI assistant, Zoe, is available 24/7 to provide instant answers to cost and care questions — no call center queues, no HR bottlenecks.
What inspired the start of Healthee?
The U.S. healthcare system is notoriously difficult to navigate, and benefits are often underused because employees don’t know how to access them. We saw an opportunity to fix that. Our founding team came from healthcare and tech backgrounds, and they knew that intelligent, intuitive tools could simplify the experience and save people time, money, and stress. On top of that, personal experiences with the U.S. healthcare system led them to feel these building pressures and drive them to do something about it.
How is Healthee different?
Unlike other platforms, we truly personalize the health benefits experience through the power of generative AI. Zoe, our in-app personal AI health assistant, delivers real-time, data-driven guidance for every stage of the healthcare journey. We bring together custom-built databases, provider networks, and client-specific plan documents to surface actionable insights for employees. Plus, we balance automation with a human touch, offering live expert support when it matters most.
What market does Healthee target and how big is it?
We serve the U.S. employer-sponsored healthcare market, an ecosystem that touches over 150 million Americans and accounts for more than $1.3T in annual healthcare spend (according to research by KFF and CMS, respectively). Our total addressable market also extends to a network of clients and partners in brokerage, TPA, PEO, captive, and benefits administration spaces.
What’s your business model?
Healthee operates on a SaaS model. We partner with employers, BenAdmins, brokers, TPAs, PEOs, and other key players to provide access to our AI-powered platform.
How are you preparing for a potential economic slowdown?
We’re doubling down on value. In uncertain times, cost containment becomes a business imperative for employers of all sizes. Healthee helps employers, especially in the self-funded space, save on claims costs, improve benefits utilization, and reduce the administrative burden on HR teams. We believe our ROI-focused approach makes our value proposition even more essential when budgets tighten.
What was the funding process like?
Healthee did not formally launch this B round. Key1 Capital approached the team after tracking the company’s traction, believing in the product’s vision and potential. The round was oversubscribed, reflecting strong conviction from new and existing investors. It was a quiet and rigorous process to determine the best timing. In the end, our new and existing investors were excited by the opportunity, saw the growing demand for AI in healthcare, and our clear product-market fit. We’re lucky to be backed by funding partners who share our mission to make access to a healthier life effortless and are committed to helping us scale with impact.
What are the biggest challenges that you faced while raising capital?
We were lucky to have incredibly educated investors supporting our initiatives and mission. We haven’t experienced any major hurdles on the investment side, but the biggest challenges for our industry have been navigating the highly regulated and nuanced health-tech space. Offering AI products while maintaining HIPAA and SOC 2 Type II compliance was a major hurdle, but securing these certifications helped grow confidence in the market and among our investor base.
What factors about your business led your investors to write the check?
A few things really stood out: our rapidly growing user base, our strong partnerships with major industry players, and the one-of-a-kind value proposition of our AI-powered platform. Investors saw that we weren’t just another tool for HR teams and employees to forget about — we’re changing the way people interact with their healthcare and providing an indispensable service.
A few things really stood out: our rapidly growing user base, our strong partnerships with major industry players, and the one-of-a-kind value proposition of our AI-powered platform. Investors saw that we weren’t just another tool for HR teams and employees to forget about — we’re changing the way people interact with their healthcare and providing an indispensable service.
What are the milestones you plan to achieve in the next six months?
We’re focused on product enhancements, including deeper integrations with partners and major new features in Zoe, our conversational AI. We’re also officially launching a reimagined version of the Healthee platform with new features and a streamlined UI. One major growth area for us has been in the pharmacy and prescription medication space through brand new partnership-driven Rx discovery, PBM, and hands-on care pathway products. By bringing pharmacy into the Healthee experience, we’re cornering yet another aspect of the healthcare experience to simplify our users’ experience. We also have some exciting partnership announcements in the works — more to come!
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Be laser-focused on the value you provide. Even without fresh capital, solving a real problem — especially one that saves time or money — will keep you in the game. Focus on client retention, operational efficiency, and proudly sharing measurable outcomes. As the VP of Finance at Healthee, I’m always aware of how we can narrate the best customer stories and return on investment through time and money savings.
Where do you see the company going in the near term?
Healthee is on a clear and undeniable path to become the most trusted digital companion for health benefits. In the near term, we’re expanding our client and user base and delivering value, while continuing to lead the charge on AI-powered health-tech.
What’s your favorite spring destination in and around the city?
Like many New Yorkers, my go-to spring destination is Central Park. I’ve lived nearby for over ten years, and it still amazes me how the park transforms with the seasons. Spring, in particular, brings it to life—the blossoms, the greenery, the energy—it’s a reminder of why I love this city.
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