eternalHealth founder and CEO Pooja Ika, who recently became the first woman to launch a new Medicare Advantage health plan in the US, has said that the company aims to bring a new kind of plan that is focused on establishing lasting relationships with its members. eternalHealth, which strives to provide high-quality care with low out-of-pocket costs to the residents of Massachusetts, is the first new health plan to be approved in Massachusetts since 2013.
- Healthcare has been in Ika’s blood: Ika had it in her since childhood. Growing up in Southborough, she used to visit her mother who was a UMass Memorial primary-care physician. Ika would watch as her mother walked patients to the booking counter after their visits. Her father was an entrepreneur who was an inspiration for her too. He was instrumental in launching a number of technology businesses in the health insurance and pharmacy benefits spaces.
- Among 1st color women to become insurer: After her graduation from Babson College in 2019, Ika charted her own path, becoming one of the youngest people to start an insurer company in Massachusetts. She is also among the first women of color to do so. eternalHealth, with its headquarters in Boston’s Back Bay, has already expanded to become a team of 20 in two years. Ika has said that eternalHealth is committed to being a new kind of plan that is focused on establishing lasting relationships with its members.
- eternalHealth raised $10M in angel funding: The company disclosed that it had raised another $10 million in Series A funding, following an initial $10 million in Seed and Pre-Series A investment by successful healthcare and tech entrepreneurs last summer. The company has also attracted the attention of Red Sox legend David Ortiz, popularly known as Big Papi. Oritz will be handling the organization as their Brand Ambassador.
- Funding to support day-to-day ops: 24-year-old Ika said the funds will be used to support the day-to-day operations, and help attract and retain membership. Most of the capital will be used as risk-based capital to support the company’s membership growth. She said that typically the launch of a new health plan takes two to three years and costs tens of millions of dollars. “At eternalHealth, we accomplished this historic goal within a year. The initial seed round helped us build a technology-powered infrastructure, optimize our operations, and hire a skilled team of 20 professionals,” she added.
- Leveraging tech to reduce costs: The use of technology and innovative platforms has helped eternalHealth reduce its administrative costs substantially across its enterprise. The savings give the company the liberty to spend towards actual medical care, while also passing down savings to members through robust, yet affordable products. The company aims to keep its administrative expenses (SG&A) at 8%, which has been a challenge for many start-up Medicare Advantage health plans across the country, a release said.