Lumity has raised $14 million in Series A funding led by The Social+Capital Partnership with participation from True Ventures and Rock Health. The new capital will help Lumity propel and scale the rollout of its data-driven benefits platform, which helps employers and their employees cost-efficiently manage their health insurance needs by offering plans and benefits specifically tailored to each customer.

Lumity makes its money through insurance commissions and provides its software and professional services at no additional cost to the end-users.“Ninety-nine percent of businesses in America have fewer than 500 employees, and they’re in the middle of a perfect storm,” says Tariq Hilaly, Lumity’s co-founder and CEO. “They’re getting hit hardest with rising health insurance premiums, with many employees now paying up to 40% of the cost of their healthcare. On top of that, the confusing array of plan choices lead many to over- or under-insure relative to their needs, collectively costing them over $40 billion every year. Lumity makes these complex decisions easy and saves employers and employees 20-30% — without compromising benefits.”

Lumity’s SaaS solution uses sophisticated risk models and easy-to-use decisioning tools, along with mentioned support to deliver value to companies that typically are not big enough to afford access to these services. It makes its money through insurance commissions and provides its software and professional services at no additional cost to the end-users.

The company’s health plan recommendation engine provides customized health expense estimates at the employee and company level, matching the right health plans and benefits to specific needs. Lumity works closely with all the major national carriers as well as the hundreds of national prescription benefits managers.

[Via: TechCrunch]