Investing in Firefly Health

Health insurance is undergoing a rapid cycle of unbundling and repackaging. Vertically-integrated “payviders” (groups that both pay for services, like an insurer would, and administer those services, like a provider would) are emerging as a new standard, and provider networks are being recontoured as virtual-first care models take root. The monolithic products of legacy insurance companies and third-party administrators (TPAs) are quickly being replaced with efficient, tech-enabled upstarts that perform high-resolution underwriting and automated claims processing, real-time payments and modular network management, and multi-channel member engagement. This is all in response to the untenable healthcare cost trends we’ve experienced over the last decade, during which family insurance premiums rose more than 54%, and deductibles more than 160%.

This article was originally published by Andreessen Horowitz BIO + HEALTH.