As money pours into mental health technology, one thing remains relatively unchanged: complicated insurance billing. Now, the median process is starting to attract startup interest too – from companies scan claims For errors, for others who want to simplify self-filing.
Nirvana health is one of the latter. It is a software platform that facilitates the process of filing mental health insurance claims. The company on Tuesday announced a $7.5 million seed expansion — bringing the company’s total funding to nearly $12 million.
Founded in 2020, Nirvana has created a personal clearinghouse designed for physicians to file insurance claims and pursue payments. The company will also file claims on behalf of people receiving therapy, provided they have out-of-network insurance benefits with an insurer backed by Nirvana and a physician working with the company. So far, the company is Cigna, Aetna, United, and Anthem. Works with major insurance providers like,
With this current round, Akshay Venkatasubramaniam, co-founder and CEO, says the company plans to become more than a hub for insurance claims. Nirvana also sees itself as a decision-making partner for the Doctor.
“We go to the therapist’s office to basically help streamline and centralize insurance operations,” Akshay Venkatasubramaniam told Nerdshala. “We essentially play the role of being a financial partner to them. We help them think through questions like: Which platforms are sending me more customers? How much is this? What about this website? Is the membership fee worth it?”
The seed expansion round was led by Inspired capital. Existing investors Eniac Ventures, RTP Seed and Ark Ventures also participated.
in the healthcare industry as a whole, Insurance Complications Responsible for Large Amounts of Unnecessary Medical Expenses in America – Almost $300 billion According to an estimate, every year is wasted on complicated medical billing jama in 2019,
In the field of mental health, out-of-network coverage plays a large role in that complexity. per a 2019 report Mental health visits are 5.4 times more likely to be out of network than primary care visits, run by the nonprofit Mental Health Treatment and Research Institute. But even if mental health coverage is in-network, mental health is generally a carved-out service, Venkatasubramaniam says. This means that even though a physician carries a primary insurer, they may actually need to bill to a different company.
For better or worse, Venkatasubramaniam believes those problems have created a place for this technology. In lieu of truly intuitive systems, technology could at least help people navigate existing ones.
“It’s supposed to be a work of technology to look at an insurance card and tell you: Hey, this is a mental health vendor for this insurance, and here’s how the claim should be counted,” he said. “So we wrote a lot of logic around it. We can file claims automatically and make sure that claims are routed to the right place and paid out fast.”
Nirvana Health is also betting that things are likely to get more Complicated before getting better. The explosion in new forms of teletherapy, from Venkatasubramaniam’s point of view, leaves it up to physicians to decide which services matter most to them, and how to manage appointments and billing from each of these new platforms.
“Nobody is talking about mate, hey, what does this mean for you as a therapist in this new world? What are your revenue goals? Let us see if this is the right opportunity for you to move forward or No.
“That’s why we play the unique middle role in helping them understand this new landscape,” he said.
Silicon Valley Bank’s third-quarter report suggests that investments in mental health services will exceed $3 billion this year. And, as noted in the report, funding is increasingly targeted towards enterprise-facing companies, including employers or payers and providers.
Nirvana has started working with some of these big telehealth players who provide medical along state lines. Software can integrate with Headspace Health, mental health coaching platform through an august merger For example, between Headspace and Ginger.
Ultimately, Nirvana is positioning itself as a supply-side business, Venkatasubramaniam says. But it is not completely consumer agnostic. This week, the company is launching a tool for consumers as well. The therapist working with Nirvana has a . have access to “Calculator Functionality” Which allows them to calculate the costs of each session with insurance.
Nirvana is turning that tool into a consumer-facing service that allows patients to calculate the cost of each visit, and which therapists may be available to them.
This is not indicative of a consumer-facing product in the works. Instead, Venkatasubramaniam sees it as a “PSA” that exercises on the company’s larger thesis: The insurance landscape is only set to get more complex but the technology could at least act as a canary in the coal mine. Is.