Lively is building the modern health savings account that puts consumers first

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Alex Siriak remembers his mother, who had a bone marrow transplant, stopped taking the drug because she didn’t have enough money for co-pay. His friend, Shobin Uralil, and his wife had similar medical problems with their first child.

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Although they knew each other in India, they were going through these personal experiences in the United States that were associated with health care costs.

He recognized health savings accounts as a powerful utility for saving on health care costs, but thought that the way they were run – largely after the service was offered by banks, according to Cyriac – put the consumer first. were not putting

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“We saw an opportunity to look at it differently and put the consumer first,” he said.

CEO Syriac and Uralil launched alive Taking a modern take on HSAs for employers and individuals in 2016. Their early decision to build their own record-keeping technology stack meant the company could make its products free to individuals who could make recurring or one-time transactions and not need to fill out forms for each claim. Is.

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live investment. image credit: alive

Today, the San Francisco-based company announced an $80 million Series C led by B Capital Group, which included Telstra Ventures and existing investor Costano Ventures. The latest funding round brings Lively’s total funding to more than $120 million.

The new funding will enable the company to manufacture more consumer devices, grow its team, and expand its offerings to financial institutions and employers. Lively started direct-to-consumer and is now moving towards business-to-business.

Over the past 18 to 24 months, it built on that focus and saw its users double last year and then more than double this year, Siriac said. This year, Lively partnered with BMO Harris to become the HSA provider for its members.

Market research firm Devenir showed that in 2020, HSA’s assets were estimated to be $77.8 billion Over 30 million accounts, a figure that has more than doubled in the past three years. Similarly, HSA adoption has prompted Lively to have $500 million in assets under management, Siriac said. This is after doubling its AUM every 11 months in the last few years. He expects to have upwards of $1 billion in assets by early 2022, which he said will make the company the fastest HSA provider to reach that milestone.

With costs rising year after year, there are fewer options for saving for long-term health care, and in order to open and fund an HSA, a person must be on a high-deductible health plan. Uralil says average deductible on all health plans now higher about $5,000 per year Compared to the Internal Revenue Service definition of a high-deductible health plan.

“It’s a function of what’s happening in health care, consumer-driven health, with more people responsible for the financial aspects of health care,” Siriac said. “Every year, rising costs and rapid adoption of health care plans make more people eligible for an HSA. Lively is providing the tools to make more informed decisions about how to spend that money.”

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