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Silicon Valley health benefits startup raises additional $81 million

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Silicon Valley health benefits startup raises additional $81 million

Collective Health Inc., a San Mateo, California-based health benefits startup, has raised $81 million in private investments to support its plans to begin offering group health care solutions to self-insured employers nationwide.

Principal investors in Collective Health's latest round of private capital fundraising include Google Inc. investment arm Google Ventures, Maverick Capital Ltd., Redpoint Ventures and RPE Ventures, along with returning investors New Enterprise Associates and Founders Fund, the company said Tuesday in a statement. The company has raised a total $119 million through three fundraising rounds since its launch in 2013.

Collective Health also announced Tuesday that it has agreed to partner with Anthem Inc., Blue Shield of California and several other insurers for access to health care provider networks across the country.

In a statement, Collective Health said it will begin offering its complete suite of medical, pharmacy, dental and vision benefits administrative services in all 50 states next year, and expects to serve approximately 30,000 covered employees and dependents.

The 2-year-old Silicon Valley startup has projected it will process over $200 million in claims in 2016, growing to as much as $ billion in claims in 2017.

“We're working to shift the focus of health insurance from profits to people,” Ali Diab, co-founder and CEO of Collective Health, said in the company's statement. “This significant infusion of capital comes at the perfect moment, enabling us to make our solution available to companies across the U.S. The funding will also enable us to continue to invest in building out our world-class team, forge new relationships with key partners and significantly grow our customer base.”

Collective Health's current portfolio of clients includes several California-based tech companies, including its most recent addition, Santa Monica-based video game producer Activision Blizzard Inc.

Collective Health announced landing Activision Blizzard as its newest employer client alongside its fundraising announcement.

“We want our employees and their families to have the best health care experience possible, and Collective Health can help us deliver on this commitment,” Milt Ezzard, Activision Blizzard's senior director of global benefits, said Tuesday in a statement. “We believe the key to a positive health care experience is applying technology and excellent member care to get the right resources to employees and their families at the right time.”