The new capital will help Chapter build its own team of licensed consultants and engineers
Medicare advisory company Chapter and its team, backed by investor and Palantir Technologies founder Peter Thiel, want to make the Medicare enrollment process easier, cheaper, and free of government red tape.
As of Tuesday, it has raised $17 million in fresh funding, bringing its total funding to nearly $19 million. The new capital will be used to build its own team of licensed consultants and engineers to provide better products for its clients.
“It is a common thing that the government is difficult to deal with. It is unusual that anyone does anything about it,” Thiel, a member of the chapter board, said in a statement. “Chapter’s ability to help people navigate Medicare’s bureaucratic maze makes it both admirable and valuable.”
Prior to Palantir, Thiel helped found PayPal and was an early supporter at Facebook.
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Chapter founder Coby Gantz told Granthshala Business that the company’s mission is to help Medicare beneficiaries find and enroll the best possible insurance coverage at the best possible cost.
““There are many challenges they face when navigating Medicare for the first time or trying to make sure they get the best coverage at the best price,” Gantz explained. “We try to take all the complexity and difficulty out of that and give people the peace of mind that they are getting the best value for the coverage that is right for them.”
Gantz noted that, even in markets with a “large variety” of Medicare plans, the difference in prices that customers might pay for the same coverage can be north of $1,500 to $2,000 per year.
In addition to helping individuals age 65 and older in Medicare, Medicare Advantage and Medicare Supplement plans, Gantz says the chapter will walk customers through the Social Security website and outline any important information and contact numbers. which they need to know.
“When we are allowed, we will call for you,” he said. “Unfortunately we are not always allowed this, it must be the person responsible there, but we automate it as much as we can“
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Chapter, like most Medicare advisory companies, makes its money by charging commission fees to insurance carriers. However, Gantz says the company stands out from the competition by providing its customers with more granular data on free Medicare plan recommendations as well as outside of their normal contracts.
“We hire and employ all of our Medicare consultants full-time in-house and we do not encourage them to differ based on the plan they recommend,” he said. “So they’re not just getting a percentage of the revenue they generate, which is also really important so that we don’t have our advisors recommend only a subset of plans that pay them more.”
Gantz said the chapter saves its members an average of $750 per person per year, although savings fluctuate depending on each member’s status.
Chapter’s Series A funding round was led by Nari Capital, with participation from Susa Ventures, Maverick Ventures, XYZ Venture Capital, Core Innovation Capital and Health 2047 Capital Partners.
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In addition to Thiel’s appointment to Chapter’s board of directors, the company has started a partnership with Palantir to accelerate the development of its Medicare data platform. The chapter has also earned the Standards of Excellence for Medicare designation from the National Council on Aging.
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