About half of Americans get their health insurance through their employer. This is great for the employee but it shifts the expense onto the employer, and this burden is felt more by smaller companies.
Sana Benefits launched to make health benefits more affordable for businesses, specializing in providing benefits to small- to medium-sized companies. The company says that it can save companies up to 30 percent compared to traditional insurance, and still provide the same quality benefits. It also provides tools for both employers and employees to manage their benefits.
On Tuesday, Sana said that it received a $3.6 million investment from Gigafund and Trust Ventures. This brings Sana’s total seed funding round to $6.3 million.
Sana was founded in San Francisco in 2017, but last year the company moved its headquarters to Austin. Now it occupies a 5,500 square-foot headquarters and has 37 employees, according to reports. Sana is actively hiring for both Austin and remote roles.
“Health care in general is a train-wreck of an industry, it’s in the Stone Age,” Sana CEO Will Young told VentureBeat. He cites the fact that the U.S. healthcare system wastes about $1 trillion a year through unnecessary administrative costs and other nonessential spending.
By cutting these unnecessary expenses and integrating automation, Sana is able to bring down the cost of its health benefits. This new round of funding will help the company bring its vision to even more businesses, and improve how healthcare is provided.