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AI-powered platform enables large employers to discover, recover, and prevent healthcare overspending; Alliant Insurance Services, Mattel among companies using Bluespine
NEW YORK, Nov. 13, 2024 /PRNewswire/ -- Bluespine, an AI-driven claims cost reduction platform for self-insured employers, today announced it has raised $7.2 million in a seed funding round led by Team8, with participation from strategic partners, to tackle medical overbilling, which is a symptom of the $300 billion fraud, waste, and abuse (FWA) healthcare crisis. With employer healthcare expenses up 14% over the past two years, Bluespine's innovative solution helps plan sponsors to lower costs without compromising care, protecting employers from financial leakage and helping them meet their fiduciary obligations.
As much as 80% of medical bills are estimated to contain errors, underscoring the urgent need for innovative solutions in healthcare cost management. Bluespine applies proprietary AI to unlock new capabilities that help self-insured employers identify, recover, and prevent overbilled claims at scale.
Bluespine was co-founded by technology experts with extensive experience in AI, data analytics, cybersecurity, and enterprise solutions. Co-Founder and CEO David Talinovsky brings over 20 years of experience leading global operations servicing Fortune 50 companies. Gal Frishman, Co-Founder and CTO, previously led a unit of 120 researchers and AI experts at IBM, and Yossi Mansano, Co-Founder and VP of R&D, is the former GM of Fortinet in Israel and has over two decades of experience developing deep system architectures to serve Fortune 100 companies. The company was established under Team8's unique Venture Creation model, led by Team8 Partner Galia Beer-Gabel.
Together, Bluespine's founders have assembled an early team of subject matter experts with a combined 25 years of experience working with leading US carriers. Bluespine is supported by a group of advisors who are former Benefits executives from Fortune 50 companies and healthcare thought leaders. The funding round will accelerate Bluespine's adoption by US employers and brokers, and support new roles in research & development.
"Bluespine is revolutionizing how self-insured employers manage their healthcare costs, comply with ERISA regulations, and fulfill their fiduciary duties," said David Talinovsky, Co-Founder and CEO of Bluespine. "Our goal is to fundamentally transform how companies approach healthcare benefits, leading to better outcomes and reduced costs for self-insured employers and employees."
Unlike traditional auditing methods, which typically review only 1% of high-cost claims, Bluespine's proprietary AI analyzes 100% of claims with high precision. Bluespine is the first-of-its kind solution to scan claims using an evidence-based approach that incorporates concepts from the cyber and anti-fraud domains. The platform leverages multiple data sources, including summary plan documents and carrier billing guidelines, to tailor its claims reviews to each employer's specific health plan designs and coverage terms. Bluespine's proprietary LLM model is optimized to catch even the most elusive overbilling scenarios.
"Solving the financial dimension of healthcare won't fix everything, but it can drive efficiencies that ultimately enhance patient care," said Team8 Managing Partner Rakefet Russak-Aminoach. "Bluespine is initially focused on helping self-insured employers to reduce costs and improve employee well-being, but that's just the tip of the iceberg. With hundreds of billions lost to medical overbilling across sectors - including fully-insured companies and governments - we see a tremendous opportunity for Bluespine to transform the market."
In addition to attracting several large employers, such as the leading toy company Mattel and the DavidShield insurance company, Bluespine is partnering with leading brokers, including Alliant Insurance Services, to enhance their capabilities and service offerings.
"After evaluating numerous claims analysis solutions, Bluespine's AI-powered platform stood out as best-in-class for claims reviews," said John Byers, Senior VP at Alliant Insurance Services. "We look forward to incorporating their solution into our offering and supporting our clients in addressing unwarranted healthcare expenses."
About Bluespine
Bluespine is an AI-driven claims cost reduction solution that empowers self-insured employers to lower annual healthcare spending while mitigating financial and legal risks around plan administration. Founded in 2023 by a team of seasoned technology and cybersecurity experts, Bluespine's mission is to reduce wasteful healthcare spending and empower companies to better serve their employees' health needs. Headquartered in Manhattan and backed by industry leaders, Bluespine serves Fortune 500 companies and other large self-insured employers, healthcare brokers, and auditors. For more information about Bluespine and its AI-powered healthcare cost-reduction solution, visit https://www.bluespine.io/.
About Team8
Team8 is a global Venture-Creation and Venture Capital Fund that creates and invests in companies focusing on Cybersecurity, Data & AI, Fintech, and Digital Health. Team8's signature Venture-Creation model is designed to identify meaningful problems, create theses on potential solutions, and build and invest in innovative companies that tackle these challenges.
Team8 leverages an in-house multi-disciplinary team of more than 80 company-builders, together with a dedicated community of global C-level executives and thought leaders. Team8 partners with world-class founders and works with them to increase the probability of success via a disciplined, repeatable process from inception through product-market fit, growth, and beyond. Team8's unique platform brings together specialized expertise across technology, go-to-market, HR, and strategy.
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SOURCE Bluespine